January 4, 2023
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Teams Phone System Licensing and Pricing

1. Understanding Teams Phone System Licensing and Pricing

Teams Cloud-Based Phone System plays a key role in enabling businesses to communicate and collaborate effectively using the Microsoft Teams platform. It can help businesses improve productivity, reduce costs, and support remote work and other flexible work arrangements. Below we discuss Microsoft Voice licensing and pricing in detail.


Teams Phone System Pricing has 3 Components:

  1. Teams Phone System Licensing – Core Features offered by Microsoft
  2. Teams Phone System Add-On Features Pricing – 3rd party optional integrations
  3. Teams Phone System Consultant Consulting Pricing


2. Teams Phone System Licensing Options

Teams Phone System PSTN functionality is enabled by purchasing a series of Licenses that are available for Teams Phone System Licensing costs.

Office 365 / Microsoft 365 Subscription License

Using Operator Connect or Direct Routing

Using Microsoft Calling Plan

Office 365 E1 / A1 / G1

Teams Phone Standard License

Teams Phone with Calling Plan

Office 365 E3 / A3 / G3

Teams Phone Standard License

Teams Phone with Calling Plan

Office 365 E5 / A5 / G5

NO (already included)

Calling Plan Only

Microsoft 365 E3 / A5 / G5

Teams Phone Standard License

Teams Phone with Calling Plan

Microsoft 365 E5 / A5 / G5

NO (already included)

Calling Plan Only

Microsoft 365 Business Basic / Standard / Premium

Teams Phone Standard License

Teams Phone with Calling Plan

Microsoft 365 F1

Teams Phone Standard License

Teams Phone with Calling Plan

Microsoft 365 F3

Teams Phone Standard License

Teams Phone with Calling Plan

Teams Phone licenses can be purchased on a per-user, per-month basis, and the Teams Phone license price depends on the specific license type and the number of users. Therefore, with a Teams Phone license, users will be able to make and receive phone calls using the Teams interface, as well as access other features such as voicemail and call history. The specific features and functionality included with a Teams Phone license will depend on the license type.

  • Teams Phone Standard License (Microsoft PBX Pricing) – USD 8/- per user per month
  • Microsoft Teams Room System License
    • Microsoft Teams Rooms Basic - USD 0/- per user per month
    • Microsoft Teams Rooms Pro - USD 40/- per user per month
  • Teams Phone Resource Account License - USD 0/- per user per month (you get 25 Resource Account Licenses for Auto Attendant and Call Queues for FREE after you have purchased Teams Phone Standard)
  • Teams Audio Conferencing – USD 0/- per user per month

For each group of 10 user licenses for either Teams Phone Standard or Teams Phone with Calling Plan within your organization, one additional Teams Phone Resource Account license becomes available. In fact, your organization will likely have enough Teams Phone Resource Account licenses based on this scaling plan. If you need additional Teams Phone Resource Account licenses beyond the standard allocation, you can purchase them through EA, EAS, EES, CSP, Web Direct, NCE – Customer led, and NCE – Partner led, or contact your Microsoft CSP Partner to purchase Office 365 Licenses.


3. Comparison of Microsoft Teams Calling Plans, Operator Connect, and Direct Routing

Microsoft Teams offers several options for providing Public Switched Telephone Network (PSTN) connectivity, including Calling Plans, Operator Connect, and Direct Routing. In fact, each option has its unique features and benefits, and the best solution for a business will depend on its specific needs and requirements.

Calling Plans are a type of licensing option that allows users to make and receive phone calls using Microsoft Teams. There are several different Teams phone with calling plan license options available, including domestic and international plans, Pay-As-You-Go plans, and add-on licenses for specific features such as audio conferencing or phone systems. In addition, Calling Plans can be purchased on a per-user, per-month basis and offer a convenient, all-in-one solution for PSTN connectivity with Teams.

  • Teams Calling Plan Pricing
    • Domestic Calling Plan - USD 12/- per user per month
    • Domestic + International Calling Plan - USD 24/- per user per month
  • Microsoft Teams Phone with Calling Plan Pricing (previously called Microsoft 365 Business Voice Pricing) – USD 15/- per user per month
  • Microsoft Teams Phone number Cost – USD 0/- per user per month (included in Calling Plans above)

Operator Connect is another option for providing PSTN connectivity with Teams. In brief, if your existing operator is a participant in the Microsoft Operator Connect Program, they can manage the service for bringing PSTN calling to Teams. Furthermore, operator Connect provides the benefits of leveraging existing contracts or finding a new operator, operator-managed infrastructure, faster deployment, and enhanced support and reliability.

  • Teams Operator Connect Pricing - USD 5.5/- per user per month is what Communication Square offers (could be more for other Operator Connect Providers)
  • Teams Operator Connect Phone Number Cost – USD 0/- per user per month (included in Operator Connect Plans above)

Direct Routing is a voice solution that allows businesses to integrate their existing phone systems with Teams and make and receive phone calls using the Teams interface. Moreover, with Direct Routing, businesses can use their own SBCs and PSTN connectivity to bring voice calling to Teams. Direct Routing is a good option for businesses that have complex PSTN connectivity requirements or that want to use their own SBCs and PSTN connectivity.

  • Teams Direct Routing Pricing – Depends on your existing VoIP Provider
  • Teams Direct Routing Phone Number Cost – Depends on your existing VoIP Provider


4. Teams Phone System Add-on Features Pricing

For a full Enterprise Phone System, experience Teams Phone System requires several 3rd party integrations built for Teams Phone System as discussed in this blog Why You Should Use the Microsoft Teams Phone System?

Microsoft Teams Compliance Recordings Pricing

USD 15 per user per month

Microsoft Teams Compliance Recordings is a feature that allows businesses to record and store phone calls, meetings, and other communications for compliance purposes. Compliance Recordings can be used to meet legal, regulatory, and business requirements for recording and storing communications.

This is different from Call Recording Options available by default with Microsoft Teams – which can only record meetings automatically, whereas the 3rd party Call Cabinet Add-On (with whom Communication Square partners) can help auto-record all Calls including PSTN Calls for compliance purposes.

Therefore, Microsoft Teams Compliance Recordings can help businesses meet their compliance requirements and ensure that they have a reliable record of their communications.

Teams Call Center Pricing

USD 75 per user per month

Microsoft Teams Call Center is a solution that allows businesses to set up a call center using Microsoft Teams. Call centers are specialized customer service centers that handle a high volume of inbound and outbound calls, typically for the purpose of customer support or sales.

With Teams Call Center, businesses can use the Microsoft Teams interface to manage call routing, call queues, and other call center functions. In fact, Teams Call Center includes features such as automatic call distribution, which allows incoming calls to be automatically routed to the next available agent; skills-based routing, which routes calls to the most qualified agent based on their skills and expertise; and real-time reporting, which provides insights on call center performance.

Communication Square partners with Landis Technologies to offer a contact center solution built right inside Microsoft Teams.

Teams Paging Pricing

USD 20 per device per month

Communication Square partners with Nuwave to offer a Paging Solution that integrates right inside Teams Phone System using Operator Connect or Direct Routing.

Microsoft Teams E911 Pricing

USD 2 per user per month

Microsoft Teams E911 is a feature that allows businesses to make emergency calls using Microsoft Teams. E911 stands for Enhanced 911, which is an enhanced version of the traditional 911 emergency call service.

With Microsoft Calling Plans – E911 Pricing is included as part of the Plan

Within Direct Routing and Teams Operator Connect pricing, it may or may not be included depending on your chosen plan in which case it costs USD 2 per user per month.

Microsoft Teams Fax Solution Pricing

USD 20 per Device Per Month

Communication Square partners with eFax to offer a 3rd party eFax Solution that is HIPAA compliant and integrates fully with Microsoft 365. In the next section, we will talk about Microsoft Teams phone costs.

5. Teams Phone System Consulting Pricing

Starts as low as USD 10,000/- for a 100-people business

Pricing for Microsoft Teams Phone System consulting services can vary depending on the provider, the specific services being offered, and the needs of your business. In fact, some consulting firms may offer a flat rate or hourly rate for their services, while others may charge a project-based fee.

When seeking consulting services for Microsoft Teams Phone System, it is important to consider the expertise and experience of the consulting firm, as well as their Microsoft Teams phone number pricing and any additional services they may offer. It is also a good idea to get quotes from multiple consulting firms to compare prices and ensure that you are getting the best value for your money.

Some factors that may affect the Microsoft Teams phone system cost regarding consulting services include the size and complexity of your business, the specific challenges you are facing with your phone system, and the extent of the consulting services being provided.


6. Making an Informed Decision on Teams Phone System Licensing and Pricing

When deciding on Microsoft Teams Phone System licensing and pricing, it is important to consider the specific needs and goals of your business. Some key factors to consider include:

  • The size of your organization and the number of users who will be using the phone system
  • The calling features and functionality that you need in your phone system
  • Your budget and any cost constraints you may have
  • Your existing infrastructure and any integration requirements you may have
However, to make an informed decision on Teams Phone System licensing and pricing, it is important to carefully evaluate your options and consider the trade-offs of different licensing models and pricing structures. Furthermore, you may also want to seek out expert advice and guidance from a Microsoft Teams partner or consulting firm, such as Communication Square LLC.

Communication Square LLC is a preferred Microsoft partner with expertise in Teams Phone System and other Microsoft communication and collaboration solutions. They can help you understand your options and make an informed decision on Microsoft 365 business voice pricing.

In Conclusion, the best Microsoft business voice pricing and licensing option for your business will depend on your specific needs and goals. By carefully considering these factors and working with a trusted partner like Communication Square LLC, you can make an informed decision that supports the long-term success of your business.

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Last Updated 2 weeks ago

About the Author

Favad Qaisar is Founder & CEO of Communication Square LLC. He is a Microsoft Certified Expert and a Charter Member. In the past he has worked with Microsoft Teams Product Group and has also Co-Authored Microsoft Certification Exams.

Beyond work he loves playing Chess.

Favad Qaisar

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