Microsoft Teams: Location-Based Routing update blocks OS default location for Operator Connect in India

Microsoft Teams updated Location-Based Routing for Operator Connect in India to block manually set Windows OS default locations, enforcing network-based location detection for regulatory compliance. This may cause intermittent PSTN calling issues, especially on VPNs or virtual environments. Organizations should update VPN split-tunnel settings and ensure proper network-based location detection. What and Why: We’ve updated Location-Based Routing (LBR) behavior for Operator Connect in India to ensure compliance with India toll bypass regulations. Microsoft Teams now blocks the use of a manually set Windows location (“OS default location”) for LBR-enforced users. If a user’s location is derived from OS default settings instead of network-based detection, geo-coordinates are stripped and cannot be used for routing decisions. This helps prevent toll bypass and location spoofing. This change reached General Availability on April 30, 2026. We acknowledge this change was not communicated in advance and are sharing this post to provide guidance. Rollout Schedule: This change has completed rollout (Worldwide and GCC). Impact on Your Organization: Who is affected:  Tenants using Operator Connect in India with Location Based Routing enabled, especially: Users on corporate networks or VPNs (especially Zscaler configurations) Users on virtual machines or remote desktop environments Environments where Windows Location Services URLs are routed through VPN or proxy instead of split tunneling Platforms/Services: Microsoft Teams (desktop) Windows Location Services Operator Connect (India) What will happen: Teams will no longer accept manually set OS default location as a valid source for LBR enforcement When network-based location detection fails: Geo-coordinates are stripped LBR cannot validate user location PSTN calling may be disabled Users may experience: Intermittent dial pad or PSTN calling availability Calling working outside the corporate network but failing inside Corporate environments may increase impact due to: VPNs or proxies (including Zscaler configurations) Virtual machines or remote desktop environments Windows Location Services traffic routed through VPN instead of split tunneling This behavior is by design. LBR in India requires verified network-based location detection for regulatory compliance. Action Required / Recommendations: Update VPN split-tunnel configurations to ensure Windows Location Services URLs are routed directly (not through VPN or proxy) Do not rely on manually […]

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