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I will compile the information I have gathered for each of your questions and attach the relevant reference documents accordingly. Please review both the answers and the attached materials for additional insights:
1/ Regarding your first concern about Apps / message extensions in SMS chats:
Currently, Teams apps, bots, or message extensions are not supported in native SMS chats (the 1:1 chats that show a phone number and the banner “is using SMS. Some Teams features aren’t available in this chat”).
As states in Plan for SMS in Teams with Microsoft Calling Plan numbers at limitations section:
- “MMS, attachments, emojis, stickers, and GIFs aren't currently supported.”
- The entire feature is positioned as plain-text A2P 10DLC messaging; rich interactive elements (bots, message extensions, adaptive cards, reactions, etc.) are fundamentally incompatible and therefore intentionally not supported.
Additionally, you cannot surface a custom “Post an Update” action (or any message extension) in the menu because the SMS participant side is plain SMS only, and the Teams client deliberately disables all extensibility surfaces in these conversations. This is by design (plain-text protocol + carrier rules), not a temporary limitation.
2/ Regarding your second concern about Graph API access to SMS chats:
Unfortunately, NO, SMS conversations are not exposed as standard /chats resources in Microsoft Graph in the same way normal Teams chats are, and you cannot reliably call GET /chats/{chat-id}/messages with $filter on createdDateTime for SMS threads.
3/ About your third concern about Current limitations / roadmap:
The lack of app/bot/message extension support is by design, not a temporary limitation. SMS is fundamentally plain-text A2P (application-to-person) messaging over carrier 10DLC networks, so rich Teams features (adaptive cards, bots, extensions, reactions, etc.) are technically incompatible and intentionally blocked.
As far as I know, currently there is no public roadmap item for adding app/message extension support to native SMS chats in Teams Calling Plans.
3/ And your last concern about Security / compliance expectations:
As states in Manage retention policies for Microsoft Teams and Learn about retention for Microsoft Teams
SMS chats in Teams have additional constraints compared to regular chats, primarily due to U.S. and Canada A2P/10DLC regulations:
- The entire tenant must be registered with The Campaign Registry (TCR), including brand and campaign approval.
- By default, only one brand and one campaign per tenant, supporting up to 49 numbers.
- Carrier-enforced rate limits based on trust scores and campaign types.
- Messaging is classified as business/A2P, not for personal use.
For compliance and archiving:
- SMS messages are stored in Teams/Exchange, appearing in the same chat threads.
- They follow the same Microsoft 365 compliance features (retention policies, eDiscovery, audit logs).
- Some organizations may have extra archiving requirements.
- While there are no specific restrictions on reading or exporting SMS content, the lack of Graph API exposure limits programmatic access.
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