Voice & Communication Licensing
Navigate Teams Phone, PSTN calling options (Calling Plans vs Direct Routing vs Operator Connect), Audio Conferencing, Teams Premium, and Teams Rooms licensing. Understand the real costs of replacing your legacy PBX with Microsoft Teams.
Key Facts
- Microsoft Teams is included in all Microsoft 365 and Office 365 plans — except in the EU/EEA where Teams-less SKUs are available following the 2023 unbundling.
- Teams Phone Standard ($8/user/month) adds PBX cloud calling features — call queues, auto attendants, call transfer, voicemail, and call park. It is also included in M365 E5 and Office 365 E5.
- There are three PSTN connectivity options: Microsoft Calling Plans (easiest), Direct Routing (most flexible, bring your own SBC), and Operator Connect (carrier-managed, middle ground).
- Audio Conferencing ($4/user/month) lets users dial in to Teams meetings via phone. It is included in M365 E5, Office 365 E5, and Microsoft 365 Business Premium (U.S./Canada only for Business Premium).
- Teams Premium ($10/user/month) adds AI-powered meeting features: intelligent recap, live translated captions (40+ languages), custom branded meetings, advanced webinars, and advanced meeting protection.
- Teams Rooms Pro ($40/room/month) is required for full conference room features including intelligent speaker recognition, front row layout, and management in the Teams Rooms Pro Management portal.
- Teams Rooms Basic is free but limited to 25 rooms per tenant and excludes advanced features like intelligent speaker, managed services, and custom backgrounds.
- Shared device licensing (Microsoft 365 F1/F3 + Teams Phone) is available for common-area phones in lobbies, break rooms, and factory floors.
Teams Is Included — But Phone Calling Is Not
Teams messaging, video meetings, and collaboration features are included in all M365 and Office 365 plans. But making and receiving phone calls through the public switched telephone network (PSTN) — replacing your traditional phone system — requires additional licensing. If your organization is in the middle of an Exchange to Microsoft 365 migration, plan the voice rollout for phase two — get email and collaboration stable first, then tackle the phone system replacement.
Did You Know?
In the European Union and EEA, Microsoft was required to unbundle Teams from M365 plans starting in 2024. EU customers can now purchase M365 plans with or without Teams, with a small price difference. Outside the EU, Teams remains bundled in all plans.
Teams Phone System
To replace your traditional PBX phone system with Teams, you need two things: (1) the Teams Phone Standard license for cloud PBX features, and (2) a PSTN connectivity method.
Teams Phone Standard ($8/user/mo)
- Cloud PBX: call queues, auto-attendants, call park, transfer, forwarding
- Voicemail with transcription
- Call analytics and quality dashboard
- Emergency calling (E911)
- Included free in Microsoft 365 E5
The Three PSTN Connectivity Options
Microsoft Calling Plans
$12-$24/user/mo- Microsoft provides the phone numbers
- Domestic or international plans
- Simplest to deploy
- Limited country availability
- Good for <500 users
Direct Routing
SBC + SIP trunk costs- Bring your own carrier
- Keep existing phone numbers easily
- Works with any SIP trunk provider
- Requires Session Border Controller
- Best for large/global orgs
Operator Connect
Varies by operator- Carrier-managed in Teams Admin
- No SBC to manage
- Growing list of certified operators
- Middle ground: simpler than DR
- Good for mid-size orgs
Pro Tip
For organizations under 500 users in countries where Microsoft Calling Plans are available, that is the simplest path. For larger or multinational organizations, Direct Routing gives the most flexibility and often the lowest per-minute calling costs.
Audio Conferencing
Audio Conferencing adds a dial-in phone number to your Teams meetings. This lets participants join by calling a local number instead of using the Teams app — essential for people on the road, in areas with poor internet, or joining from a regular phone.
- Costs $4/user/month as an add-on
- Included free in Microsoft 365 E5 and Office 365 E5
- Each organizer gets a dedicated dial-in number
- Supports 40+ countries for local dial-in numbers
- Only needed for meeting organizers — attendees use the organizer's dial-in number
Teams Rooms Licensing
Conference rooms with dedicated Teams hardware (touchscreen, camera, speaker bar) need their own license:
- Teams Rooms Basic (free) — Up to 25 rooms. Join meetings, share content. No advanced features.
- Teams Rooms Pro ($40/room/month) — Unlimited rooms. AI-powered camera framing, intelligent speaker recognition, management portal, dual-screen support.
- Rooms license is per-room, not per-user. One license covers all the hardware in that room.
Did You Know?
Microsoft Teams is included in all Microsoft 365 and Office 365 plans — except in the EU/EEA where Teams-less SKUs are available following the 2023 unbundling.
Test Your Knowledge
Question 1 of 3
A 300-user company in the United States is on Microsoft 365 E3 and wants to replace their on-premises PBX with Teams. They want Microsoft to handle everything (numbers, minutes, routing) with minimal IT complexity. What licenses do they need?
Chapter Summary
- 1Teams is bundled in all M365 plans (Business Basic through E5, and Frontline F1/F3). In the EU/EEA, Teams-less plans are available at a lower price with Teams available separately at ~$5.25/user/month.
- 2Teams Phone Standard ($8/user/month, included in E5) adds PBX capabilities — call queues, auto attendants, voicemail, and call control. It replaces on-premises phone systems but does NOT include PSTN connectivity on its own.
- 3Three PSTN connectivity paths exist: Microsoft Calling Plans (simplest, $12-24/user/month), Direct Routing (bring your own SBC and carrier, $0 Microsoft cost), and Operator Connect (carrier-managed integration, middle ground). You can mix all three in one tenant.
- 4Audio Conferencing ($4/user/month, included in E5) adds dial-in phone numbers to Teams meetings — essential when attendees have poor internet or prefer phone dial-in.
- 5Teams Premium ($10/user/month) provides AI meeting intelligence (recap, translated captions), custom branding, advanced webinars, and meeting protection features like watermarking and E2E encryption.
- 6Teams Rooms Pro ($40/room/month) is the full-featured conference room license with intelligent speaker, front row layout, and managed services. Teams Rooms Basic is free but capped at 25 rooms with limited features.
- 7Common-area phones (lobbies, break rooms) use M365 F1/F3 + Teams Phone Standard, or the dedicated Common Area Phone license ($8/month) which includes Teams Phone.
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