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With the phone directory you can either be in it or not in it and this setting applies to the whole company. However, with Multi Site enabled, this is not very effective as individual sites only want to see their internal users and not the entire company. We have around 127 sites so if everyone was published in the main directory, not only would be unwieldy, it would also invite calls in between sites that users would not want to receive.
In Multi Site you should have a separate phone directory just for that site.