Bluetooth telephone prep

[yorkiea8]

Hi guys

I am new to the a8 and have just purchased 06 plate 4.2tdi se. I am confused on whether it has bluetooth or not. If I press phone it says telephone not installed, if a search on my phone or my partners phone it doesn't show any new devise to pair with. Checked my mmi version and it shows 21.2.0.0534. I've read various things but wanted to ask here, so do they all have Bluetooth as standard? Do I just need mmi update to make it work? Or do I need to upgrade some hardware in the car? The manual just talks about a handset but I don't have one just what looks like a connection for one under the centre arm rest.

I hate not having hands free in the car and really wanted to avoid 3rd party systems.

Any advise is much appreciated

Cheers
Paul