Licensing guide for Microsoft Teams Phone System

Licensing guide for Microsoft Teams Phone System

In this guide we will provide a comprehensive breakdown to simplify Microsoft Teams licensing in order to integrate Phone System.


Add-on licensing options available

All Microsoft 365 plans allow Microsoft Teams users to make peer-to-peer calls within your organization using VoIP technology. However, you may want to add on different licenses for capabilities like making calls to PSTN numbers or setting up a PBX.

Add-on licenses are licenses for specific Microsoft Teams capabilities, they give you the flexibility to add features only for those users who need them.


Teams Phone with Calling Plan Bundle

The Teams Phone with Calling Plan license bundles, Teams Phone System’s PBX capabilities and a Domestic Calling Plan for PSTN connectivity.

Teams Phone Standard

Teams Phone System is a hosted telephone service that gives you call control and Private Branch Exchange (PBX) capabilities. Teams Phone Standard licenses give you all Teams Phone System capabilities like cloud voicemail, caller ID, call park, call forwarding, auto attendants, call queues, call transfer, and caller ID.

Microsoft Teams Calling Plans

If you want users to be able to call phone numbers outside your organization, you can purchase Microsoft Teams Calling Plans to connect to PSTN phone numbers with Microsoft as your PSTN provider. There are Domestic Calling Plans, International Calling Plans, and Domestic and International Calling Plans.

Communication Credits

Communication Credits provide a monthly pool of minutes that can also be used for PSTN phone calls, if all your Calling Plan minutes get used before the beginning of the next month. If you want toll-free numbers for Audio Conferencing, auto attendants, or call queues, you will need to set up Communications Credits.

Audio Conferencing

Sometimes people in your organization will need to use a phone to call in to a Teams meeting instead of their computer. Microsoft Teams Audio Conferencing with dial-out to USA/CAN can now be added for free to any Office 365 or Microsoft 365 subscription that includes Microsoft Teams.

Microsoft Teams Rooms

Microsoft Teams Rooms is an additional Microsoft Teams product that brings video, audio, and content sharing to conference rooms. Organizations can purchase Microsoft Teams Rooms standalone licenses for these capabilities. For more information, see this Teams Meeting Room Licensing article. 

Voice connectivity through Microsoft 365

The add-on licensing options available to you depend on the Microsoft 365 plan you have. Whether you are a small business, enterprise organization, educational institution, government agency, or nonprofit, you have three ways to get Teams Phone System and PSTN connectivity:

      • For Microsoft 365 Business, E1/E3, A1/A3, or G1/G3 plan you can add Teams Phone with Calling Plan bundle licenses.

This model will give you Teams Phone System PBX capabilities and a Microsoft Domestic Calling Plan. Through this option, Microsoft will handle Phone number management and billing, so it’s best for small organizations with less than 25 users.

      • You can also buy Microsoft 365 Business, E1/E3, A1/A3, or G1/G3 plan, add Teams Phone Standard licenses, and choose a Microsoft standalone calling plan or third-party PSTN carrier.

This model will give you Teams Phone System by connecting to the PSTN through Operator Connect or Direct Routing. To learn more about which option is best for your organization, read this comparison.

      • For Microsoft 365 Business, E5/A5/G5 plan you can add Microsoft Calling Plans or connect to a third-party PSTN connectivity provider.

The Microsoft 365 E5, A5, and G5 plans include Teams Phone System, but organizations need to use a PSTN connectivity provider such as Direct Routing. This option is best for larger organizations with +25 users that need custom features and critical support.


If you would like to discuss the licensing options further, please contact our friendly experts who will guide you to find the best option for your company.

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