Microsoft Teams Direct Routing Licensing Requirements

Microsoft Teams Direct Routing Licensing Requirements

Microsoft Teams has revolutionized the way we collaborate, offering a unified platform for chat, meetings, and file sharing. However, navigating the licensing landscape for Teams Direct Routing is crucial for a successful implementation. Without proper licenses, users won’t unlock the full potential of this powerful communication solution. This guide will demystify the licensing requirements, ensuring you make informed decisions for your organization.

Each user requires proper Microsoft 365 or Office 365 licensing, which can be purchased through a Cloud Solution Provider (CSP) such as The 365 Cloud Store, a Microsoft authorized reseller offering cloud licensing with 24/7 premium support. Please reach out if you need licensing guidance and more information.


User Licensing for Teams Direct Routing

In order to deploy Microsoft Teams Direct Routing, there are several components enterprises and small-medium businesses must follow. Organizations will need to hold licenses for Microsoft Teams, Audio Conferencing, and Phone System respectively to enable Microsoft Teams as their cloud telephony. Unlocking the calling power of Teams Direct Routing requires assigning three essential licenses to your users:

      1. Microsoft Teams Phone System: This license is the cornerstone of Direct Routing, allowing users to make and receive calls seamlessly through your existing phone carrier.
      2. Microsoft Teams: This broader license grants access to the entire Teams collaboration platform, including instant messaging, online meetings, file sharing, and more. It acts as the foundation for seamless communication within your organization.
      3. Microsoft Audio Conferencing (Optional): While not mandatory for all calls, this license comes into play when you need to host scheduled conferences. It enables features like dial-in numbers and online calling capabilities for participants, ensuring a smooth and accessible conferencing experience.

By ensuring your users have these licenses, you equip them to fully leverage the voice functionalities of Teams Direct Routing while also enjoying the comprehensive collaboration features within the Teams platform.


Microsoft 365 E3

This license includes basic Microsoft Teams meetings capabilities, without Phone System and Audio Conferencing, which can be added separately. This license is priced at $32 user/month, and requires additional fees for Direct Routing.

Microsoft 365 E5

The E5 license includes Microsoft Teams, Phone System and Audio Conferencing all bundled in. With the E5 license, enterprises have all the Microsoft licensing necessary to get started with MS Teams Direct Routing for $57 user/month.

Microsoft 365 F3

The F3 license, is the most affordable option available, priced at $8 user/month. That said, this would be the go to license for those organizations with limited budget that only want the basic features of Microsoft. Consider that Phone System and Audio Conferencing licensing must be added separately.

Microsoft add-on licenses

There are numerous Microsoft add-on licenses to unlock advanced features. Here are the most relevant for your cloud telephony infrastructure:

      1. Audio Conferencing – Audio Conferencing in Microsoft 365 and Office 365 enables users to call in to meetings from their phones. Audio Conferencing allows up to 1000 phone attendees at $4.00​ user/month.
      2. Phone System – Enables PBX capabilities including call control in Office 365 and replaces on-premises PBX. This license is $8.00 user/month.
      3. Toll free numbers – Unlock toll-free numbers for Audio Conferencing, auto attendants, or call queues through communication credits.
      4. Advanced Communications – Includes advanced meetings customization and tools to manage your organization’s communication policies. Additional features include custom branded meeting lobby to tailor your meetings, and tools to monitor, track, and analyze data on users and devices.


Before purchasing any licenses, it’s best to consult a Microsoft certified partner to deploy an optimal solution that best suits your business. You can consult all our Microsoft Teams Direct Routing plans and pricing here, or please, contact us for a personalized consultation and custom quote.

Your might also like:

Sign up to learn more

Get news, updates, and insights about Microsoft Unified Communications (UCaaS).

Share this story, choose your platform!

Related posts

side banner-direct routing

Microsoft Teams Direct Routing Services

Enjoy high-quality calls, flexible pay-as-you-go, volume pricing, and failover solution

Recent Posts


teams icon

Microsoft Teams Professional Services

Tailor Teams to your unique needs with expert design and integration