Microsoft 365 Message Center item MC1401300

MC1401300 - 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.

Message Center ID

MC1401300

Category

prevent Or Fix Issue

Severity

normal

Services

Microsoft Teams

Tags

Feature update, User impact, Admin impact

Published

2026-06-22

Last updated

2026-06-22

Expires

2026-12-31

[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 environmentsEnvironments where Windows Location Services URLs are routed through VPN or proxy instead of split tunneling Platforms/Services:Microsoft Teams (desktop)Windows Location ServicesOperator Connect (India) What will happen: Teams will no longer accept manually set OS default location as a valid source for LBR enforcementWhen network-based location detection fails:Geo-coordinates are strippedLBR cannot validate user locationPSTN calling may be disabledUsers may experience:Intermittent dial pad or PSTN calling availabilityCalling working outside the corporate network but failing insideCorporate environments may increase impact due to:VPNs or proxies (including Zscaler configurations)Virtual machines or remote desktop environmentsWindows Location Services traffic routed through VPN instead of split tunnelingThis 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 set OS default location for LBR-enforced usersValidate that network-based location detection is functioning correctly, especially for users reporting intermittent calling issuesIf users report a disabled dial pad:Verify whether their device is falling back to OS default locationCheck network routing configuration Learn more: Plan Operator Connect for India | Microsoft Learn [Compliance considerations:]ConsiderationExplanationDoes the change alter how existing customer data is processed, stored, or accessed?The change modifies how location data is validated and processed by enforcing network-based detection and rejecting OS-derived location sources for LBR decisions.Does the change modify, interrupt, or disable any Purview-related capabilities?Calling functionality may be disabled when compliant location data is unavailable, which could indirectly impact user activity and communication patterns.