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Microsoft Teams License Options for Enterprises

May 3, 2021
By ProArch

If you’re one of the millions of businesses with a remote or hybrid workforce, enabling employees to work efficiently is key to the success of their role. Microsoft Teams is a powerful tool that is helping teams all over the world collaborate in real time - safely and securely. 

If you are currently leveraging Microsoft 365, formerly Office 365, you have access to Teams. It also has add-on phone features for companies that already have a Microsoft 365 subscription but require more features like external calling and audio conferencing. Microsoft has several licensing options to fit your business needs and get you started on Teams.

Organizations using Teams without add-on license features can: 
  • Communicate internally and externally with other Teams users, both peer-to-peer and in a conference call environment
  • Instant message, video share, and chat, in one-to-one and group settings
  • Upload and collaborate on files
  • Set up teams and channels

Add-on licenses are a great way for companies to add connectivity to the Public Switched Telephone Network (PSTN) so employees can communicate with people externally. 

The Microsoft Teams add-on licenses are: 

  1. Phone System: $8 per user/month 
  2. Audio Conferencing: $4 per user/month 
  3. Domestic Calling Plan: $12 per user/month 
  4. Domestic + International Calling Plan: $24 per user/month 
  5. Teams Phone with Calling Plan: $15 per user/month 

The add-on licensing options available to you depends on your plan. However, add-on licenses are available for all enterprise-level subscriptions.

For $8 per user per month, you can utilize the Phone System

Any basic PSTN connectivity requires this license. It includes features like voicemail, but if you’d like to place or receive phone calls to or from the PTSN without a provider, you’ll need a different license. 

Phone System users can utilize mobile devices, a headset, or a Teams-compatible phone to place and receive calls.  

  • Phone System license is required for the purchase of Audio Conferencing and Calling Plans add-ons
  • Phone System license is included in Microsoft 365 E5 and Office 365 E5
  • For calls to and from outside the organization, purchase a Calling Plan to connect to the PTSN 
For $4 per user per month, the Audio Conferencing license will help you plan and lead meetings.

Audio Conferencing is for users who are responsible for scheduling and/or leading meetings. These conference calls will require a unique access code for members, making the process more secure and efficient. With the Audio Conferencing license, meeting attendees who attend don’t require assigned licenses.  

  • A phone System license is required for Audio Conferencing 
  • Audio Conferencing license is included as a $0 add-on for SKUs:
    • Microsoft 365 F1, F3, and E3
    • Office 365 F3, E1, and E3
    • Microsoft 365 Business Basic, Standard, and Premium


Users can make domestic calls for $12 per user per month, or $24 for an International Calling Plan.

The Calling Plan add-on can be adjusted to fit the user, depending on their role and your organization’s needs. Members can be assigned a domestic plan or international plan, which means you can purchase international plans only for those who need them. Each assignee gets a primary phone number and can make/receive calls.

When combined with the Phone System license, the Calling Plan can be the voice solution for your entire company.  

  • Phone System required for Calling Plans 
  • Required to use Microsoft Cloud for PSTN connectivity 


Get Microsoft Teams Phone with Calling Plan for $15 per user each month 
Teams Phone with Calling Plan replaced Microsoft Business Voice effectively March 1, 2022.

Teams Phone with Calling Plan is a cloud-based phone system that enables users to make, receive, and transfer calls to and from landlines and mobile phones on the public switched telephone network (PSTN) in Microsoft Teams.

  • Teams Phone with Calling Plan includes a phone system and a domestic calling plan. Audio Conferencing functionality – previously available as part of Business Voice - will be part of all Teams-inclusive Microsoft 365 and Office 365 SKUs (vs. an add-on feature) starting on March 1, 2022.
  • Teams Phone with Calling Plan requires a Microsoft 365 or Office 365 subscription that includes Microsoft Teams.


Benefits of Microsoft Teams add-on licenses: 
  • Eliminates the need for on-premises equipment 
  • Built-in security and control 
  • Easily reduce or increase the number of lines based on your needs 
  • Consolidation of conferencing tools 
  • A consistent and familiar user experience as part of the Microsoft 365 environment 


If you need help deciding which Microsoft Teams license option fits your organization’s objectives, contact us. ProArch’s Microsoft License Specialists can work with your company to select the Teams license options that works. 

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