Teams Phone and a Microsoft Calling Plan are two separate purchases that solve two different jobs, and most organizations that want full business calling buy both.[1] Teams Phone is Microsoft's cloud phone system, the per-user add-on license that provides private branch exchange (PBX) features such as auto attendants, call queues, and cloud voicemail plus the ability to dial regular phone numbers, but on its own it includes no minutes to the outside world.[1][4] A Microsoft Calling Plan is one of four ways to connect Teams Phone to the public switched telephone network (PSTN); it makes Microsoft your phone carrier and supplies the phone numbers and calling minutes.[2][3] Because a Calling Plan is an add-on to Teams Phone rather than a replacement for it, you buy the Teams Phone license first and then attach a Calling Plan, or buy the two together as a bundle.[2][4] Calls between Teams users in the same organization travel over the internet and need neither product, which is why the distinction only matters once you have to reach landlines and mobiles.[1]
\n","summary":"Teams Phone and a Microsoft Calling Plan are two different purchases that most organizations buy together. Teams Phone is the cloud phone system, the per-user license that adds PBX features like auto attendants, call queues, and PSTN dialing. A Calling Plan is one of four ways to connect that phone system to the public phone network; it makes Microsoft your carrier and supplies the numbers and minutes. Internal Teams calls need neither, and a Calling Plan cannot work without a Teams Phone license underneath it.","publishedAt":"2026-07-18T03:41:44.225","verifiedAt":"2026-07-17T00:00:00","editorialStatus":"APPROVED","lastReviewedAt":"2026-07-17T00:00:00","nextReviewDueAt":"2026-10-17T00:00:00","templateVersion":"v2","aliases":["Teams Phone vs Calling Plan","Difference between Teams Phone and a Microsoft Calling Plan","Do I need a Calling Plan with Teams Phone?","Is a Calling Plan the same as Teams Phone?","Teams Phone license vs Calling Plan license","What does a Microsoft Calling Plan add to Teams Phone?","Teams Phone Standard vs Teams Phone with Calling Plan","Does Teams Phone include a calling plan?","Teams Phone or Calling Plan, which do I need?","Microsoft Teams calling plan vs phone system","PSTN connectivity versus Teams Phone","Teams Phone with Calling Plan bundle explained"],"confidenceScore":95,"confidenceLabel":"High","canonicalUrl":null},"contributor":{"id":"ec39deab-44fe-48d8-9029-fefe993ab85a","slug":"answer-stack","displayName":"AnswerStack","websiteUrl":null},"contributorOrganizationProfile":{"entityId":"ec39deab-44fe-48d8-9029-fefe993ab85a","legalName":null,"description":null,"websiteUrl":null,"imageUrl":null,"slogan":null,"subtitle":null,"facts":[],"coiNote":null,"foundingDate":null,"numberOfEmployeesText":null,"contactPoint":null,"address":null,"headquartersText":null,"organizationType":null},"contributorPerson":{"slug":"answerstack-editorial-team","displayName":"AnswerStack Editorial Team"},"sections":[{"id":"98003004-ce0c-42ca-a793-07883e3a42fe","sectionKey":"phone_system_vs_phone_line","sectionType":"markdown_section","heading":"The short answer: two different products that work together","introMarkdown":"Teams Phone is the phone system, and a Microsoft Calling Plan is one way to buy the phone line that connects it to the outside world. They sit at two different layers, so one does not replace the other, and an organization that wants full business calling usually pays for both.[1][2] Teams Phone is a per-user add-on license that turns Microsoft Teams into a private branch exchange, or PBX, with call-control features such as auto attendants, call queues, and cloud voicemail.[1][4] A Calling Plan is a separate add-on that connects that phone system to the public switched telephone network, or PSTN, so users can dial and receive ordinary landline and mobile numbers, with Microsoft acting as the carrier that supplies the numbers and minutes.[2][3]\n\n### Why the two are sold separately\n\nMicrosoft keeps the phone system and the phone line as distinct products because a business can connect Teams Phone to the outside network in more than one way. A Microsoft Calling Plan is only one of four PSTN options, alongside Operator Connect, Teams Phone Mobile, and Direct Routing, and some organizations use a third-party carrier instead of buying minutes from Microsoft at all.[3] The documentation itself keeps the license and the connection apart, stating that a PSTN solution is separate from a Teams Phone license and that the license entitles a user to enhanced calling and access to whichever PSTN solution you choose.[1]\n\n### When the difference actually matters\n\nCalls between Teams users inside the same organization run over the internet and reach the outside phone network at no point, so they need neither a Teams Phone license nor a Calling Plan.[1] The distinction starts to matter the moment someone needs to call a supplier's landline, a customer's mobile, or an emergency number, because that is when both the phone system and a PSTN connection have to be in place.[1][3]","introHtml":"Teams Phone is the phone system, and a Microsoft Calling Plan is one way to buy the phone line that connects it to the outside world. They sit at two different layers, so one does not replace the other, and an organization that wants full business calling usually pays for both.[1][2] Teams Phone is a per-user add-on license that turns Microsoft Teams into a private branch exchange, or PBX, with call-control features such as auto attendants, call queues, and cloud voicemail.[1][4] A Calling Plan is a separate add-on that connects that phone system to the public switched telephone network, or PSTN, so users can dial and receive ordinary landline and mobile numbers, with Microsoft acting as the carrier that supplies the numbers and minutes.[2][3]
\nMicrosoft keeps the phone system and the phone line as distinct products because a business can connect Teams Phone to the outside network in more than one way. A Microsoft Calling Plan is only one of four PSTN options, alongside Operator Connect, Teams Phone Mobile, and Direct Routing, and some organizations use a third-party carrier instead of buying minutes from Microsoft at all.[3] The documentation itself keeps the license and the connection apart, stating that a PSTN solution is separate from a Teams Phone license and that the license entitles a user to enhanced calling and access to whichever PSTN solution you choose.[1]
\nCalls between Teams users inside the same organization run over the internet and reach the outside phone network at no point, so they need neither a Teams Phone license nor a Calling Plan.[1] The distinction starts to matter the moment someone needs to call a supplier's landline, a customer's mobile, or an emergency number, because that is when both the phone system and a PSTN connection have to be in place.[1][3]
\n","outroMarkdown":null,"outroHtml":null,"contentJson":{},"configJson":{},"noteMarkdown":null,"noteHtml":null,"sortOrder":0},{"id":"858b0db1-2a31-4b87-9bcd-b66c0ea3bf4a","sectionKey":"what_is_teams_phone","sectionType":"markdown_section","heading":"What is Teams Phone?","introMarkdown":"Teams Phone is Microsoft's cloud phone system, delivered from the same Microsoft 365 platform that runs Teams chat and meetings, and it provides the call-control and PBX features a business would traditionally buy from a separate phone vendor.[1] As a per-user add-on license called Teams Phone Standard, it turns on hosted PBX capabilities such as cloud voicemail, call forwarding, call transfer, auto attendants, call queues, and caller ID.[4] Microsoft lists Teams Phone Standard at $10.00 per user per month on an annual commitment.[6]\n\n### What the license adds on top of basic Teams calling\n\nEvery Teams Enterprise user can already place person-to-person calls to another Teams user over the internet, along with voicemail and video, without any Teams Phone license.[5] The Teams Phone license is the piece that adds the enterprise call-handling features and, importantly, the ability to answer and place calls to a PSTN phone number or an internal extension rather than only to another Teams user.[5] That is the line Microsoft draws between native Teams calling and Teams Phone: the base license covers internal calling, and the add-on covers the PBX features and external dialing.[5]\n\n### What it does not do by itself\n\nA Teams Phone license does not include any minutes to the outside world.[4] It gives a user the right to enhanced calling and access to a PSTN solution, but the actual numbers and the route to landlines, mobiles, and emergency services come from a separate PSTN connection.[1][4]","introHtml":"Teams Phone is Microsoft's cloud phone system, delivered from the same Microsoft 365 platform that runs Teams chat and meetings, and it provides the call-control and PBX features a business would traditionally buy from a separate phone vendor.[1] As a per-user add-on license called Teams Phone Standard, it turns on hosted PBX capabilities such as cloud voicemail, call forwarding, call transfer, auto attendants, call queues, and caller ID.[4] Microsoft lists Teams Phone Standard at $10.00 per user per month on an annual commitment.[6]
\nEvery Teams Enterprise user can already place person-to-person calls to another Teams user over the internet, along with voicemail and video, without any Teams Phone license.[5] The Teams Phone license is the piece that adds the enterprise call-handling features and, importantly, the ability to answer and place calls to a PSTN phone number or an internal extension rather than only to another Teams user.[5] That is the line Microsoft draws between native Teams calling and Teams Phone: the base license covers internal calling, and the add-on covers the PBX features and external dialing.[5]
\nA Teams Phone license does not include any minutes to the outside world.[4] It gives a user the right to enhanced calling and access to a PSTN solution, but the actual numbers and the route to landlines, mobiles, and emergency services come from a separate PSTN connection.[1][4]
\n","outroMarkdown":null,"outroHtml":null,"contentJson":{},"configJson":{},"noteMarkdown":null,"noteHtml":null,"sortOrder":1},{"id":"8c17c96a-09a7-4e06-81bb-96c4c5d3b32e","sectionKey":"what_is_calling_plan","sectionType":"markdown_section","heading":"What is a Microsoft Calling Plan?","introMarkdown":"A Microsoft Calling Plan is Microsoft's all-in-the-cloud PSTN service that connects Teams Phone to the public phone network, with Microsoft acting as your carrier and supplying both the phone numbers and the calling minutes.[2] Microsoft describes it as the simplest option for connecting Teams Phone to the PSTN for external calling, since there is no separate carrier contract to arrange and no voice hardware to run.[2] It carries a 99.999% reliability service level agreement for the PSTN service.[3]\n\n### The three Calling Plan types\n\nMicrosoft sells Calling Plans in three forms, and you can assign different ones to different users.[2] A Domestic Calling Plan lets a licensed user call numbers in the country where their Microsoft 365 license is assigned, with unlimited incoming minutes and a block of outgoing minutes set by the license.[2] An International Calling Plan adds outbound minutes to numbers in 196 countries on top of the domestic allowance.[2] A Pay-As-You-Go Calling Plan includes unlimited incoming minutes but no outgoing minutes, charging outbound calls per minute through Communication Credits or post-usage billing.[2]\n\n### How the minutes pool works\n\nOutgoing minutes are shared rather than fixed per person. All users in the same country on the same Calling Plan draw from one pool, so 100 United States users each allocated 3,000 minutes share a combined 300,000 minutes, and any calls beyond that pool are billed per minute.[2] Pooling only applies across identical Calling Plans, and availability is limited to the countries where Microsoft sells the service, which is the first thing to confirm before planning around it.[2]","introHtml":"A Microsoft Calling Plan is Microsoft's all-in-the-cloud PSTN service that connects Teams Phone to the public phone network, with Microsoft acting as your carrier and supplying both the phone numbers and the calling minutes.[2] Microsoft describes it as the simplest option for connecting Teams Phone to the PSTN for external calling, since there is no separate carrier contract to arrange and no voice hardware to run.[2] It carries a 99.999% reliability service level agreement for the PSTN service.[3]
\nMicrosoft sells Calling Plans in three forms, and you can assign different ones to different users.[2] A Domestic Calling Plan lets a licensed user call numbers in the country where their Microsoft 365 license is assigned, with unlimited incoming minutes and a block of outgoing minutes set by the license.[2] An International Calling Plan adds outbound minutes to numbers in 196 countries on top of the domestic allowance.[2] A Pay-As-You-Go Calling Plan includes unlimited incoming minutes but no outgoing minutes, charging outbound calls per minute through Communication Credits or post-usage billing.[2]
\nOutgoing minutes are shared rather than fixed per person. All users in the same country on the same Calling Plan draw from one pool, so 100 United States users each allocated 3,000 minutes share a combined 300,000 minutes, and any calls beyond that pool are billed per minute.[2] Pooling only applies across identical Calling Plans, and availability is limited to the countries where Microsoft sells the service, which is the first thing to confirm before planning around it.[2]
\n","outroMarkdown":null,"outroHtml":null,"contentJson":{},"configJson":{},"noteMarkdown":null,"noteHtml":null,"sortOrder":2},{"id":"ac5d4fed-6dbd-4277-a814-9797df2c99d0","sectionKey":"compare_table","sectionType":"table_section","heading":"How do Teams Phone and a Calling Plan compare?","introMarkdown":"The two products differ in what they are, what they supply, and whether you can buy one without the other. The table sets them side by side, and the sections that follow explain the connectivity options and the licensing in more detail.","introHtml":"The two products differ in what they are, what they supply, and whether you can buy one without the other. The table sets them side by side, and the sections that follow explain the connectivity options and the licensing in more detail.
\n","outroMarkdown":"A Calling Plan is priced as an addition to the phone system rather than as a standalone service, so budgeting only for the Teams Phone license understates what a setup that can actually reach the outside network costs.[4][7]","outroHtml":"A Calling Plan is priced as an addition to the phone system rather than as a standalone service, so budgeting only for the Teams Phone license understates what a setup that can actually reach the outside network costs.[4][7]
\n","contentJson":{"rows":[{"cells":["What it is","The cloud phone system and PBX, sold as a per-user license [1][4]","A PSTN connection that supplies dial tone, sold as an add-on to Teams Phone [2][4]"]},{"cells":["What it provides","Auto attendants, call queues, voicemail, caller ID, and the right to dial PSTN numbers [4][5]","Phone numbers and calling minutes, with Microsoft as the carrier [2]"]},{"cells":["Who is your carrier","Not a carrier; it is the call-control software [1]","Microsoft [2]"]},{"cells":["Needed for internal Teams calls","No; basic Teams calling covers those [1][5]","No [1]"]},{"cells":["Needed to call landlines and mobiles","Yes, the license is required [1][4]","One PSTN option is required, and a Calling Plan is one of four [3]"]},{"cells":["Typical list price","About $10.00 per user per month [6][7]","Bundled with Teams Phone at about $17.00 per user per month on a US plan [6][7]"]},{"cells":["Can you buy it on its own","Yes, as Teams Phone Standard [4]","No; it attaches to a Teams Phone license [2][4]"]}],"columns":["Consideration","Teams Phone (Standard)","Microsoft Calling Plan"]},"configJson":{},"noteMarkdown":null,"noteHtml":null,"sortOrder":3},{"id":"71bbc55d-2c99-435c-a5ba-c53297987607","sectionKey":"pstn_options_table","sectionType":"table_section","heading":"If a Calling Plan is one option, what are the alternatives?","introMarkdown":"A Microsoft Calling Plan is one of four ways to give Teams Phone a connection to the PSTN, and one organization can combine more than one of them, splitting them by region or by type of worker.[3] The table compares the four at a glance, and each gets its own explanation below. Every option still needs a Teams Phone license underneath it, so the choice changes who supplies the numbers and the connection, not whether the license is required.[3][4]","introHtml":"A Microsoft Calling Plan is one of four ways to give Teams Phone a connection to the PSTN, and one organization can combine more than one of them, splitting them by region or by type of worker.[3] The table compares the four at a glance, and each gets its own explanation below. Every option still needs a Teams Phone license underneath it, so the choice changes who supplies the numbers and the connection, not whether the license is required.[3][4]
\n","outroMarkdown":"A Calling Plan is the only one of the four where Microsoft is the carrier. The other three route your calls through a third-party operator while Microsoft keeps running the Teams software.[3]","outroHtml":"A Calling Plan is the only one of the four where Microsoft is the carrier. The other three route your calls through a third-party operator while Microsoft keeps running the Teams software.[3]
\n","contentJson":{"rows":[{"cells":["Microsoft Calling Plan","Microsoft","None","Countries where Microsoft sells Calling Plans and you want one vendor for software and dial tone [2][3]"]},{"cells":["Operator Connect","A certified landline operator","None","Your preferred carrier is in the program and you want it managed for you [3]"]},{"cells":["Teams Phone Mobile","A certified mobile operator","A mobile SIM, which can be an eSIM","A SIM mobile number should double as the Teams number [3]"]},{"cells":["Direct Routing","Any operator you choose","A certified session border controller (SBC)","You need to keep an existing carrier or connect legacy equipment [3]"]}],"columns":["Option","Who is your carrier","Infrastructure you manage","Where it tends to fit"]},"configJson":{},"noteMarkdown":null,"noteHtml":null,"sortOrder":4},{"id":"0a831678-20f2-4082-bb4d-f716cf57c66e","sectionKey":"pstn_calling_plan","sectionType":"markdown_section","heading":"Microsoft Calling Plan","introMarkdown":"A Microsoft Calling Plan makes Microsoft your carrier, so the numbers, the minutes, emergency screening in the United States, and support all come from Microsoft under a 99.999% reliability service level agreement.[3][9] You buy a Calling Plan license per user, pick a Domestic, International, or Pay-As-You-Go option based on how much your users call out, and manage it in the Teams admin center with no hardware to run.[2][3] This tends to fit organizations in a country where Microsoft sells Calling Plans that are content to have a single vendor for both the software and the dial tone.[2][3] Availability is the first thing to check, because Calling Plans are sold in a limited set of countries, so a company outside that list has to use one of the other three connections.[2]","introHtml":"A Microsoft Calling Plan makes Microsoft your carrier, so the numbers, the minutes, emergency screening in the United States, and support all come from Microsoft under a 99.999% reliability service level agreement.[3][9] You buy a Calling Plan license per user, pick a Domestic, International, or Pay-As-You-Go option based on how much your users call out, and manage it in the Teams admin center with no hardware to run.[2][3] This tends to fit organizations in a country where Microsoft sells Calling Plans that are content to have a single vendor for both the software and the dial tone.[2][3] Availability is the first thing to check, because Calling Plans are sold in a limited set of countries, so a company outside that list has to use one of the other three connections.[2]
\n","outroMarkdown":null,"outroHtml":null,"contentJson":{},"configJson":{},"noteMarkdown":null,"noteHtml":null,"sortOrder":5},{"id":"e8acceba-a039-489e-ac05-30c72e7ede48","sectionKey":"pstn_operator_connect","sectionType":"markdown_section","heading":"Operator Connect","introMarkdown":"Operator Connect lets you keep or choose a third-party landline carrier that has already built a certified connection into Teams, so you get their numbers and dial tone without running voice hardware yourself.[3] After you pick an operator from Microsoft's directory, you enable them in the Teams admin center and assign their numbers to your users, and that operator provides the PSTN access, support, and service level agreement.[3] This suits a business whose preferred carrier takes part in the program, or one that wants managed calling in a country where Microsoft's own Calling Plan is not sold.[3] Because the operator owns the underlying connection, much of the setup and ongoing management shifts to them, which is usually the point for a team that would rather not run its own telephony.[3]","introHtml":"Operator Connect lets you keep or choose a third-party landline carrier that has already built a certified connection into Teams, so you get their numbers and dial tone without running voice hardware yourself.[3] After you pick an operator from Microsoft's directory, you enable them in the Teams admin center and assign their numbers to your users, and that operator provides the PSTN access, support, and service level agreement.[3] This suits a business whose preferred carrier takes part in the program, or one that wants managed calling in a country where Microsoft's own Calling Plan is not sold.[3] Because the operator owns the underlying connection, much of the setup and ongoing management shifts to them, which is usually the point for a team that would rather not run its own telephony.[3]
\n","outroMarkdown":null,"outroHtml":null,"contentJson":{},"configJson":{},"noteMarkdown":null,"noteHtml":null,"sortOrder":6},{"id":"5c8a5fb6-2402-4821-b542-29b91fc39e49","sectionKey":"pstn_teams_phone_mobile","sectionType":"markdown_section","heading":"Teams Phone Mobile","introMarkdown":"Teams Phone Mobile ties a user's SIM-enabled mobile number to their Teams identity, so a single number rings on the cell network and inside Teams.[3] It relies on certified mobile operators that have completed the integration with Microsoft, and the mobile SIM, which can be an eSIM, is the piece you administer.[3] This fits mobile-first staff who want one number for the desk, the app, and the handset instead of carrying separate work and mobile lines.[3] Whether it is available depends on your mobile provider taking part in the Teams Phone Mobile program, so confirm that with the carrier before planning around it.[3]","introHtml":"Teams Phone Mobile ties a user's SIM-enabled mobile number to their Teams identity, so a single number rings on the cell network and inside Teams.[3] It relies on certified mobile operators that have completed the integration with Microsoft, and the mobile SIM, which can be an eSIM, is the piece you administer.[3] This fits mobile-first staff who want one number for the desk, the app, and the handset instead of carrying separate work and mobile lines.[3] Whether it is available depends on your mobile provider taking part in the Teams Phone Mobile program, so confirm that with the carrier before planning around it.[3]
\n","outroMarkdown":null,"outroHtml":null,"contentJson":{},"configJson":{},"noteMarkdown":null,"noteHtml":null,"sortOrder":7},{"id":"5546d63d-2a4d-464f-9eda-f203f3e46e82","sectionKey":"pstn_direct_routing","sectionType":"markdown_section","heading":"Direct Routing","introMarkdown":"Direct Routing connects a carrier of your choice to Teams Phone through a certified session border controller, or SBC, that you, an integrator, or a Direct-Routing-as-a-Service provider procures and manages.[3] It is the most flexible option and works in any country, which is why organizations pick it to keep an existing carrier contract, meet a local regulatory requirement, or connect legacy equipment such as analog devices, overhead paging, and third-party PBXs.[3] The cost of that flexibility is responsibility, since the SBC brings certificate management, DNS settings, call-routing policies in Teams, and last-mile circuit integration, so it asks more of the IT team or partner running it than the other options do.[3] Direct Routing is also the only model that can keep local PSTN calls working through a Survivable Branch Appliance if the connection to the cloud is interrupted.[3]","introHtml":"Direct Routing connects a carrier of your choice to Teams Phone through a certified session border controller, or SBC, that you, an integrator, or a Direct-Routing-as-a-Service provider procures and manages.[3] It is the most flexible option and works in any country, which is why organizations pick it to keep an existing carrier contract, meet a local regulatory requirement, or connect legacy equipment such as analog devices, overhead paging, and third-party PBXs.[3] The cost of that flexibility is responsibility, since the SBC brings certificate management, DNS settings, call-routing policies in Teams, and last-mile circuit integration, so it asks more of the IT team or partner running it than the other options do.[3] Direct Routing is also the only model that can keep local PSTN calls working through a Survivable Branch Appliance if the connection to the cloud is interrupted.[3]
\n","outroMarkdown":null,"outroHtml":null,"contentJson":{},"configJson":{},"noteMarkdown":null,"noteHtml":null,"sortOrder":8},{"id":"f7f1d41f-5cb2-4526-9e8f-170364badf8c","sectionKey":"what_a_calling_plan_is_not","sectionType":"markdown_section","heading":"What a Calling Plan is not","introMarkdown":"A Calling Plan is a PSTN connection, not the phone system itself, and a few common mix-ups are worth clearing up.\n\n### It is not another name for Teams Phone\n\nTeams Phone is the phone system, and a Calling Plan is one way to connect it to the outside network.[2][4] You can run Teams Phone with Operator Connect, Teams Phone Mobile, or Direct Routing and never buy a Microsoft Calling Plan, and independent licensing guides describe the same split between the phone-system license and the separate PSTN connectivity.[3][8]\n\n### Teams Phone is not a carrier\n\nThe Teams Phone license provides the PBX features and the right to reach the PSTN, but it supplies no numbers and no minutes on its own.[1][4] A Calling Plan is what makes Microsoft your carrier, and with three of the four PSTN options a third party rather than Microsoft holds that role.[2][3]\n\n### Buying the phone system does not always mean a new license\n\nSome subscriptions already include the Teams Phone license, so the only new purchase is the PSTN connection.[4] Microsoft 365 E5 and Office 365 E5 include Teams Phone, which is why organizations on those plans often add only a Calling Plan or another PSTN option rather than the phone license itself.[4]\n\n### A Calling Plan is not required for internal calls\n\nCalls between Teams users in the same organization run over the internet and never touch the PSTN, so they work with no Calling Plan and no Teams Phone license at all.[1]","introHtml":"A Calling Plan is a PSTN connection, not the phone system itself, and a few common mix-ups are worth clearing up.
\nTeams Phone is the phone system, and a Calling Plan is one way to connect it to the outside network.[2][4] You can run Teams Phone with Operator Connect, Teams Phone Mobile, or Direct Routing and never buy a Microsoft Calling Plan, and independent licensing guides describe the same split between the phone-system license and the separate PSTN connectivity.[3][8]
\nThe Teams Phone license provides the PBX features and the right to reach the PSTN, but it supplies no numbers and no minutes on its own.[1][4] A Calling Plan is what makes Microsoft your carrier, and with three of the four PSTN options a third party rather than Microsoft holds that role.[2][3]
\nSome subscriptions already include the Teams Phone license, so the only new purchase is the PSTN connection.[4] Microsoft 365 E5 and Office 365 E5 include Teams Phone, which is why organizations on those plans often add only a Calling Plan or another PSTN option rather than the phone license itself.[4]
\nCalls between Teams users in the same organization run over the internet and never touch the PSTN, so they work with no Calling Plan and no Teams Phone license at all.[1]
\n","outroMarkdown":null,"outroHtml":null,"contentJson":{},"configJson":{},"noteMarkdown":null,"noteHtml":null,"sortOrder":9},{"id":"28611fda-1100-44b0-ac71-644e95036449","sectionKey":"trade_offs","sectionType":"markdown_section","heading":"Trade-offs and limits worth knowing","introMarkdown":"The choice between buying a Calling Plan and using another PSTN option turns on where you can get service, how much of the connection you want to run yourself, and what it costs. Each has limits worth planning around.\n\n### Calling Plan coverage is uneven\n\nMicrosoft sells Calling Plans in a limited set of countries, so a company with offices outside that list often ends up combining connectivity types by region, using a Calling Plan where it is available and Operator Connect or Direct Routing elsewhere.[2][3]\n\n### Pooled minutes can run out\n\nCalling Plan minutes are shared across users in the same country and reset monthly, and calls beyond the pool are billed per minute, so a team that calls out heavily can see overage charges if the allowance is set too low.[2] An International or Pay-As-You-Go plan changes that math, and a Pay-As-You-Go plan has to be funded with Communication Credits or post-usage billing before outbound calls will connect.[2]\n\n### The license is not the whole bill\n\nA Teams Phone license on its own cannot call the outside world, so the working cost includes both the license and a PSTN option, whether that is a Microsoft Calling Plan, an Operator Connect subscription, or the SBC and carrier contract behind Direct Routing.[3][4] Independent pricing guides current to 2026 put Teams Phone Standard at about $10 per user per month and the Teams Phone with Calling Plan bundle at about $17, before any per-minute overage.[7]\n\n### Both depend on internet and power\n\nBecause external calls travel as data, calling through any of these options needs a working internet connection and power at the user's location, unlike a legacy analog line that draws power from the phone company.[3]","introHtml":"The choice between buying a Calling Plan and using another PSTN option turns on where you can get service, how much of the connection you want to run yourself, and what it costs. Each has limits worth planning around.
\nMicrosoft sells Calling Plans in a limited set of countries, so a company with offices outside that list often ends up combining connectivity types by region, using a Calling Plan where it is available and Operator Connect or Direct Routing elsewhere.[2][3]
\nCalling Plan minutes are shared across users in the same country and reset monthly, and calls beyond the pool are billed per minute, so a team that calls out heavily can see overage charges if the allowance is set too low.[2] An International or Pay-As-You-Go plan changes that math, and a Pay-As-You-Go plan has to be funded with Communication Credits or post-usage billing before outbound calls will connect.[2]
\nA Teams Phone license on its own cannot call the outside world, so the working cost includes both the license and a PSTN option, whether that is a Microsoft Calling Plan, an Operator Connect subscription, or the SBC and carrier contract behind Direct Routing.[3][4] Independent pricing guides current to 2026 put Teams Phone Standard at about $10 per user per month and the Teams Phone with Calling Plan bundle at about $17, before any per-minute overage.[7]
\nBecause external calls travel as data, calling through any of these options needs a working internet connection and power at the user's location, unlike a legacy analog line that draws power from the phone company.[3]
\n","outroMarkdown":null,"outroHtml":null,"contentJson":{},"configJson":{},"noteMarkdown":null,"noteHtml":null,"sortOrder":10},{"id":"712dffbf-a733-4ca7-8164-749db4ec18f3","sectionKey":"contributor_perspective","sectionType":"markdown_section","heading":"How this answer was researched","introMarkdown":"The definitions, licensing rules, and connectivity details here come primarily from Microsoft's own Teams documentation on Microsoft Learn, which is the authoritative source for how Teams Phone and Calling Plans are licensed and what each one does.[1][2][3][4][5] Pricing was taken from Microsoft's published figures and corroborated with an independent pricing guide current to April 2026, and the distinction between the phone-system license and a separate PSTN connection was cross-checked against an independent licensing explainer.[6][7][8] Microsoft revises Teams licensing, pricing, plan availability, and feature names on a regular basis, so the specific dollar figures, plan types, and country coverage here reflect what the cited pages stated on the verification date. Practitioners who deploy, administer, or support Teams Phone and Calling Plans at scale are welcome to suggest corrections or additions, which are checked against Microsoft's primary documentation before any update.","introHtml":"The definitions, licensing rules, and connectivity details here come primarily from Microsoft's own Teams documentation on Microsoft Learn, which is the authoritative source for how Teams Phone and Calling Plans are licensed and what each one does.[1][2][3][4][5] Pricing was taken from Microsoft's published figures and corroborated with an independent pricing guide current to April 2026, and the distinction between the phone-system license and a separate PSTN connection was cross-checked against an independent licensing explainer.[6][7][8] Microsoft revises Teams licensing, pricing, plan availability, and feature names on a regular basis, so the specific dollar figures, plan types, and country coverage here reflect what the cited pages stated on the verification date. Practitioners who deploy, administer, or support Teams Phone and Calling Plans at scale are welcome to suggest corrections or additions, which are checked against Microsoft's primary documentation before any update.
\n","outroMarkdown":null,"outroHtml":null,"contentJson":{},"configJson":{},"noteMarkdown":"This answer was written and reviewed by the AnswerStack Editorial Team, which has no commercial stake in the products, companies, or methods discussed. Every claim is cited inline and verified on the dates shown.","noteHtml":"This answer was written and reviewed by the AnswerStack Editorial Team, which has no commercial stake in the products, companies, or methods discussed. Every claim is cited inline and verified on the dates shown.
\n","sortOrder":11}],"citations":[{"title":"What is Teams Phone","url":"https://learn.microsoft.com/en-us/microsoftteams/what-is-phone-system-in-office-365","excerpt":"A PSTN solution is separate from a Teams Phone license. A PSTN solution provides a customer's tenant with phone numbers and PSTN access to domestic, international, and emergency calling. The Teams Phone license entitles a Teams user to enhanced calling capabilities within the tenant and access to the PSTN solution.","quoteText":null,"sourceRole":"PRIMARY","verifiedAt":"2026-07-17T00:00:00","supportsText":"Teams Phone as Microsoft's call control and PBX in Microsoft 365; internal Teams calls stay native and off the PSTN; a PSTN solution is separate from a Teams Phone license; the license entitles a user to enhanced calling and access to a chosen PSTN solution; Teams Phone can replace an existing PBX a","domain":"learn.microsoft.com","publisherName":"Microsoft Learn"},{"title":"Microsoft Teams Calling Plans","url":"https://learn.microsoft.com/en-us/microsoftteams/calling-plans-for-office-365","excerpt":"Microsoft provides complete Private Branch Exchange (PBX) capabilities for your organization through Teams Phone. However, to enable users to make calls outside your organization, you need to connect Teams Phone to the Public Switched Telephone Network (PSTN) by selecting a calling plan... With this option, Microsoft acts as your PSTN carrier.","quoteText":null,"sourceRole":"PRIMARY","verifiedAt":"2026-07-17T00:00:00","supportsText":"A Calling Plan is Microsoft's all-in-the-cloud PSTN service with Microsoft as carrier; the three plan types (Domestic, International, Pay-As-You-Go); you must first buy a Teams Phone add-on license, then a Calling Plan, or buy the bundle; pooled minutes example of 100 US users at 3,000 minutes shari","domain":"learn.microsoft.com","publisherName":"Microsoft Learn"},{"title":"Microsoft - PSTN connectivity options","url":"https://learn.microsoft.com/en-us/microsoftteams/pstn-connectivity","excerpt":"In order to use PSTN telephony services with Teams Phone, the user account must be licensed with the Teams Phone application and also be equipped with a PSTN solution from your PSTN service provider of choice.","quoteText":null,"sourceRole":"PRIMARY","verifiedAt":"2026-07-17T00:00:00","supportsText":"The four PSTN connectivity models (Microsoft Calling Plan, Operator Connect, Teams Phone Mobile, Direct Routing), who the carrier is and what infrastructure each manages, the 99.999% Calling Plan SLA, that a Teams Phone license plus a PSTN solution are both required, that a tenant can combine option","domain":"learn.microsoft.com","publisherName":"Microsoft"},{"title":"Microsoft Teams add-on licenses - Microsoft Teams","url":"https://learn.microsoft.com/en-us/microsoftteams/teams-add-on-licensing/microsoft-teams-add-on-licensing","excerpt":"Microsoft Teams Calling Plans is an add-on license to Teams Phone for making calls to the PSTN. With this option, Microsoft is your PSTN carrier. If you already have Teams Phone and if Calling Plans are available in your country/region, you can purchase one of the Calling Plan options.","quoteText":null,"sourceRole":"PRIMARY","verifiedAt":"2026-07-17T00:00:00","supportsText":"Teams Phone Standard as a hosted PBX add-on (cloud voicemail, call forwarding, call transfer, auto attendants, call queues, caller ID) with no included PSTN minutes; Microsoft Calling Plans are an add-on to Teams Phone; Teams Phone with Calling Plan bundle versus a Teams Phone Standard license with ","domain":"learn.microsoft.com","publisherName":"Microsoft Learn"},{"title":"Teams Phone features - Microsoft Teams","url":"https://learn.microsoft.com/en-us/microsoftteams/here-s-what-you-get-with-phone-system","excerpt":"The Microsoft Teams Enterprise license includes native calling features, and the Teams Phone license unlocks even more features. For features where a Teams Phone license is required, a connection with the Public Switched Telephone Network (PSTN) and phone number is also required.","quoteText":null,"sourceRole":"PRIMARY","verifiedAt":"2026-07-17T00:00:00","supportsText":"The split between native Teams Enterprise calling and the Teams Phone license; person-to-person Teams calls, voicemail, and video are included without Teams Phone, while dialing a PSTN number or extension, auto attendants, call queues, call park, call delegation, and external caller ID require the T","domain":"learn.microsoft.com","publisherName":"Microsoft Learn"},{"title":"Microsoft Teams Phone","url":"https://www.microsoft.com/en-us/microsoft-teams/microsoft-teams-phone","excerpt":"Teams Phone Standard $10.00 user/month, paid yearly. Teams Phone with Calling Plan $17.00 user/month, paid yearly.","quoteText":null,"sourceRole":"PRIMARY","verifiedAt":"2026-07-17T00:00:00","supportsText":"Teams Phone Standard listed at $10.00 per user per month paid yearly; Teams Phone with Calling Plan at $17.00 per user per month paid yearly for a US Zone 1 plan; 99.999% uptime guarantee for Teams Phone, Calling Plans, and Audio Conferencing","domain":"microsoft.com","publisherName":"Microsoft"},{"title":"Microsoft Teams Phone System Pricing & Plans: Full Guide for 2026","url":"https://www.cloudtalk.io/blog/microsoft-teams-phone-system-pricing/","excerpt":"Teams Phone Standard, $10/user/month, no included calling minutes. Standard does not include any calling minutes, but can be combined with a compatible providers' phone plan. Teams Phone with Calling Plan, $17/user/month.","quoteText":null,"sourceRole":"INDEPENDENT","verifiedAt":"2026-07-17T00:00:00","supportsText":"Independent corroboration updated April 30, 2026 that Teams Phone Standard is $10 per user per month with no included calling minutes and must be combined with a calling plan, and that Teams Phone with Calling Plan is $17 per user per month including a number and a bundle of outbound minutes","domain":"cloudtalk.io","publisherName":"CloudTalk"},{"title":"Microsoft Teams License - Which one you Need for Microsoft Teams Phone","url":"https://www.pure-ip.com/blog/microsoft-teams-license-which-one-you-need-for-microsoft-teams-phone","excerpt":"Teams Phone Standard enables Teams to work as a phone. However, to activate this feature, users also need to have phone connectivity.","quoteText":null,"sourceRole":"INDEPENDENT","verifiedAt":"2026-07-17T00:00:00","supportsText":"Independent explainer distinguishing the Teams Phone Standard system license from separate PSTN connectivity; Teams Phone Standard provides the phone-system features but users also need phone connectivity (Microsoft Calling Plans, Operator Connect, or Direct Routing) to make external calls","domain":"pure-ip.com","publisherName":"Pure IP"},{"title":"Microsoft Operator Connect Explained: What It Is, How It Works, and When to Use It","url":"https://www.atlantech.net/blog/microsoft-operator-connect-explained","excerpt":"With Calling Plans, Microsoft operates as the phone carrier and offers PSTN service directly.","quoteText":null,"sourceRole":"SUPPORTING","verifiedAt":"2026-07-17T00:00:00","supportsText":"Business-facing explainer describing a Microsoft Calling Plan as the simplest PSTN option with Microsoft operating as the phone carrier, versus Operator Connect and Direct Routing; corroborated by [2] and [3]","domain":"atlantech.net","publisherName":"Atlantech Online"}],"revisions":[],"relatedAnswers":[{"id":"9cfa6183-815b-4644-861d-2bfe543492cc","slug":"how-does-teams-phone-work","question":"How does Teams Phone work?","publishedAt":"2026-07-18T03:47:27.534","confidenceScore":93,"confidenceLabel":"High","industry":{"id":"ff619d7c-d7d7-485e-a05a-53fba07f33ed","slug":"telecommunications","label":"Telecommunications","description":"Business voice, fiber, UCaaS, and network services"},"topic":{"slug":"teams-phone","label":"Teams Phone","description":"Microsoft Teams Phone: licensing, PSTN connectivity, calling plans, and setup.","schemaKind":null},"contributor":{"id":"ec39deab-44fe-48d8-9029-fefe993ab85a","slug":"answer-stack","displayName":"AnswerStack","websiteUrl":null},"snippet":"Teams Phone turns Microsoft 365 into a cloud phone system: a call-control service in the cloud acts as the PBX, internal calls run over the internet, and a Teams Phone license plus a PSTN connection (Microsoft Calling Plan, Operator Connect, Teams Phone Mobile, or Direct Routing) let users dial real phone numbers. Admins assign numbers, voice enable users, and build auto attendants and call queues, while call audio flows over the most direct path it can find, encrypted with SRTP.","url":"/q/how-does-teams-phone-work"},{"id":"8317c7a7-d7a6-4a7c-8428-441b19177913","slug":"how-do-i-choose-a-pstn-connectivity-option-for-teams-phone","question":"How do I choose a PSTN connectivity option for Teams Phone?","publishedAt":"2026-07-18T03:43:05.249","confidenceScore":92,"confidenceLabel":"High","industry":{"id":"ff619d7c-d7d7-485e-a05a-53fba07f33ed","slug":"telecommunications","label":"Telecommunications","description":"Business voice, fiber, UCaaS, and network services"},"topic":{"slug":"teams-phone","label":"Teams Phone","description":"Microsoft Teams Phone: licensing, PSTN connectivity, calling plans, and setup.","schemaKind":null},"contributor":{"id":"ec39deab-44fe-48d8-9029-fefe993ab85a","slug":"answer-stack","displayName":"AnswerStack","websiteUrl":null},"snippet":"Teams Phone needs a PSTN connection on top of the phone license, and Microsoft offers four ways to provide it: a Microsoft Calling Plan, Operator Connect, Teams Phone Mobile, and Direct Routing. The right pick depends on whether Calling Plans are sold in your countries, whether you want to keep a current carrier, how much infrastructure you want to run, and any emergency-calling or continuity needs. A single tenant can combine options by region or by type of worker.","url":"/q/how-do-i-choose-a-pstn-connectivity-option-for-teams-phone"},{"id":"dc0dd213-a7d5-4cd3-95e3-5457b9308922","slug":"what-teams-phone-license-do-i-need","question":"What Teams Phone license do I need?","publishedAt":"2026-07-18T03:41:33.762","confidenceScore":93,"confidenceLabel":"High","industry":{"id":"ff619d7c-d7d7-485e-a05a-53fba07f33ed","slug":"telecommunications","label":"Telecommunications","description":"Business voice, fiber, UCaaS, and network services"},"topic":{"slug":"teams-phone","label":"Teams Phone","description":"Microsoft Teams Phone: licensing, PSTN connectivity, calling plans, and setup.","schemaKind":null},"contributor":{"id":"ec39deab-44fe-48d8-9029-fefe993ab85a","slug":"answer-stack","displayName":"AnswerStack","websiteUrl":null},"snippet":"Teams Phone licensing comes in layers. Every user needs a base Microsoft 365 or Teams subscription, then a Teams Phone license, then a PSTN connection for external calls. E5 plans already include Teams Phone; lower tiers add Teams Phone Standard at about $10 per user per month. A Microsoft Calling Plan, Operator Connect, Teams Phone Mobile, or Direct Routing supplies the outside line, and only the Microsoft Calling Plan route needs its own extra license.","url":"/q/what-teams-phone-license-do-i-need"},{"id":"856a2341-d0c5-4496-a8d2-d97388060c1c","slug":"how-much-does-teams-phone-cost","question":"How much does Teams Phone cost?","publishedAt":"2026-07-18T03:40:01.318","confidenceScore":92,"confidenceLabel":"High","industry":{"id":"ff619d7c-d7d7-485e-a05a-53fba07f33ed","slug":"telecommunications","label":"Telecommunications","description":"Business voice, fiber, UCaaS, and network services"},"topic":{"slug":"teams-phone","label":"Teams Phone","description":"Microsoft Teams Phone: licensing, PSTN connectivity, calling plans, and setup.","schemaKind":null},"contributor":{"id":"ec39deab-44fe-48d8-9029-fefe993ab85a","slug":"answer-stack","displayName":"AnswerStack","websiteUrl":null},"snippet":"Teams Phone Standard is $10 per user per month for cloud PBX features with no calling minutes. Microsoft's bundled Calling Plans run $17 (3,000 pooled domestic minutes) or $34 (adds international). Microsoft 365 E5 already includes the phone-system license. Once you add PSTN connectivity, resource accounts, and a base Microsoft 365 license, independent estimates put the real all-in cost near $25 to $35 per user per month.","url":"/q/how-much-does-teams-phone-cost"}],"contributorStats":{"verifiedAnswers":224,"openDisputes":0},"schemaJson":{"@context":"https://schema.org","@type":"Question","name":"What is the difference between Teams Phone and a Calling Plan?","text":"What is the difference between Teams Phone and a Calling Plan?","url":"https://www.answerstack.io/q/what-is-the-difference-between-teams-phone-and-a-calling-plan","answerCount":1,"datePublished":"2026-07-18T03:41:44.225","author":{"@type":"Person","name":"AnswerStack Editorial Team","worksFor":{"@type":"Organization","name":"AnswerStack"},"url":"https://www.answerstack.io/contributors/answer-stack"},"about":[{"@type":"Thing","name":"Teams Phone"},{"@type":"Thing","name":"Telecommunications"}],"acceptedAnswer":{"@type":"Answer","text":"Teams Phone and a Microsoft Calling Plan are two separate purchases that solve two different jobs, and most organizations that want full business calling buy both.[1] Teams Phone is Microsoft's cloud phone system, the per-user add-on license that provides private branch exchange (PBX) features such as auto attendants, call queues, and cloud voicemail plus the ability to dial regular phone numbers, but on its own it includes no minutes to the outside world.[1][4] A Microsoft Calling Plan is one of four ways to connect Teams Phone to the public switched telephone network (PSTN); it makes Microsoft your phone carrier and supplies the phone numbers and calling minutes.[2][3] Because a Calling Plan is an add-on to Teams Phone rather than a replacement for it, you buy the Teams Phone license first and then attach a Calling Plan, or buy the two together as a bundle.[2][4] Calls between Teams users in the same organization travel over the internet and need neither product, which is why the distinction only matters once you have to reach landlines and mobiles.[1]","url":"https://www.answerstack.io/q/what-is-the-difference-between-teams-phone-and-a-calling-plan","upvoteCount":0,"datePublished":"2026-07-18T03:41:44.225","dateModified":"2026-07-17T00:00:00","author":{"@type":"Person","name":"AnswerStack Editorial Team","worksFor":{"@type":"Organization","name":"AnswerStack"},"url":"https://www.answerstack.io/contributors/answer-stack"},"citation":[{"@type":"CreativeWork","name":"What is Teams Phone","url":"https://learn.microsoft.com/en-us/microsoftteams/what-is-phone-system-in-office-365"},{"@type":"CreativeWork","name":"Microsoft Teams Calling Plans","url":"https://learn.microsoft.com/en-us/microsoftteams/calling-plans-for-office-365"},{"@type":"CreativeWork","name":"Microsoft - PSTN connectivity options","url":"https://learn.microsoft.com/en-us/microsoftteams/pstn-connectivity"},{"@type":"CreativeWork","name":"Microsoft Teams add-on licenses - Microsoft Teams","url":"https://learn.microsoft.com/en-us/microsoftteams/teams-add-on-licensing/microsoft-teams-add-on-licensing"},{"@type":"CreativeWork","name":"Teams Phone features - Microsoft Teams","url":"https://learn.microsoft.com/en-us/microsoftteams/here-s-what-you-get-with-phone-system"},{"@type":"CreativeWork","name":"Microsoft Teams Phone","url":"https://www.microsoft.com/en-us/microsoft-teams/microsoft-teams-phone"},{"@type":"CreativeWork","name":"Microsoft Teams Phone System Pricing & Plans: Full Guide for 2026","url":"https://www.cloudtalk.io/blog/microsoft-teams-phone-system-pricing/"},{"@type":"CreativeWork","name":"Microsoft Teams License - Which one you Need for Microsoft Teams Phone","url":"https://www.pure-ip.com/blog/microsoft-teams-license-which-one-you-need-for-microsoft-teams-phone"},{"@type":"CreativeWork","name":"Microsoft Operator Connect Explained: What It Is, How It Works, and When to Use It","url":"https://www.atlantech.net/blog/microsoft-operator-connect-explained"}]}}}