To turn Microsoft Teams into a working phone, a user needs three things stacked together: a base Microsoft 365 or Teams subscription, a Teams Phone license (the entitlement Microsoft records internally as the Microsoft 365 Phone System application), and a way to connect to the public switched telephone network (PSTN) for calls outside your organization.[2][5] If your users are on Microsoft 365 E5 or Office 365 E5, the Teams Phone license is already included, so you add only a PSTN option; on E1, E3, or a Business plan, you buy a Teams Phone Standard add-on, listed by Microsoft at $10.00 per user per month.[2][3] Teams Phone on its own covers internal calls and PBX features such as auto attendants and voicemail, but it cannot dial a regular phone number until you attach a PSTN option like a Microsoft Calling Plan, Operator Connect, Teams Phone Mobile, or Direct Routing.[5][6] Microsoft also sells a Teams Phone with Calling Plan bundle, around $17.00 per user per month for a domestic plan in the US, UK, and Canada, or $13.00 for pay-as-you-go, which folds the license and Microsoft-carrier calling into one SKU.[3][4]
\n","summary":"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.","publishedAt":"2026-07-18T03:41:33.762","verifiedAt":"2026-07-17T00:00:00","editorialStatus":"APPROVED","lastReviewedAt":"2026-07-17T00:00:00","nextReviewDueAt":"2026-10-17T00:00:00","templateVersion":"v2","aliases":["Which Microsoft Teams Phone license do I need?","Do I need Teams Phone Standard or a Calling Plan?","What license lets Teams make phone calls?","Does Microsoft 365 E5 include Teams Phone?","Teams Phone Standard vs Teams Phone with Calling Plan","How much is a Teams Phone license?","What do I need to buy for Teams Phone?","Do I need a Calling Plan and a Teams Phone license?","Teams Phone licensing requirements","Which Teams license do I need for PSTN calling?","What is the Microsoft 365 Phone System license?","Teams Phone add-on license explained"],"confidenceScore":93,"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":"35a732c0-1e9e-4c29-b055-e6d294f0249d","sectionKey":"what_makes_teams_a_phone","sectionType":"markdown_section","heading":"What actually turns Teams into a phone system?","introMarkdown":"A Teams Phone deployment is a stack of licenses rather than a single purchase, and the phrase Teams Phone license refers to just one layer of that stack.[2][5] Microsoft builds business calling on top of the Microsoft 365 subscription your users already hold, so the question of what you need usually comes down to which layers you are missing rather than starting from nothing.[2][8]\n\n### The three layers you are licensing\n\nThe first layer is a base Microsoft 365, Office 365, or standalone Teams subscription, because a Teams Phone add-on cannot be assigned to a user who has no Teams license underneath it.[2][3] The second layer is the Teams Phone entitlement itself, which Microsoft records as the Microsoft 365 Phone System application and sells either as the Teams Phone Standard add-on or bundled into higher plans.[2] The third layer is a connection to the public switched telephone network, the PSTN, which supplies real phone numbers and the route to domestic, international, and emergency calling.[5][6]\n\n### Why the license and the phone line are sold separately\n\nMicrosoft keeps the Teams Phone license and the PSTN connection as two distinct decisions on purpose. The license entitles a user to the enhanced calling and PBX features and to access a PSTN solution, while the PSTN solution is what actually carries a call to an outside number.[5][6] Because of that split, a Teams Phone license by itself lets people call other Teams users and use features like voicemail and auto attendants, yet it cannot reach a landline or mobile number until a PSTN option is attached.[5][9] Calls that stay between Teams users inside your organization travel over the internet and never touch the phone network, which is why those internal calls carry no carrier charge.[5]","introHtml":"A Teams Phone deployment is a stack of licenses rather than a single purchase, and the phrase Teams Phone license refers to just one layer of that stack.[2][5] Microsoft builds business calling on top of the Microsoft 365 subscription your users already hold, so the question of what you need usually comes down to which layers you are missing rather than starting from nothing.[2][8]
\nThe first layer is a base Microsoft 365, Office 365, or standalone Teams subscription, because a Teams Phone add-on cannot be assigned to a user who has no Teams license underneath it.[2][3] The second layer is the Teams Phone entitlement itself, which Microsoft records as the Microsoft 365 Phone System application and sells either as the Teams Phone Standard add-on or bundled into higher plans.[2] The third layer is a connection to the public switched telephone network, the PSTN, which supplies real phone numbers and the route to domestic, international, and emergency calling.[5][6]
\nMicrosoft keeps the Teams Phone license and the PSTN connection as two distinct decisions on purpose. The license entitles a user to the enhanced calling and PBX features and to access a PSTN solution, while the PSTN solution is what actually carries a call to an outside number.[5][6] Because of that split, a Teams Phone license by itself lets people call other Teams users and use features like voicemail and auto attendants, yet it cannot reach a landline or mobile number until a PSTN option is attached.[5][9] Calls that stay between Teams users inside your organization travel over the internet and never touch the phone network, which is why those internal calls carry no carrier charge.[5]
\n","outroMarkdown":null,"outroHtml":null,"contentJson":{},"configJson":{},"noteMarkdown":null,"noteHtml":null,"sortOrder":0},{"id":"b0359e35-8b27-40fb-bc1a-af60b02f259a","sectionKey":"license_paths_table","sectionType":"table_section","heading":"Which Teams Phone license path fits your situation?","introMarkdown":"Most organizations land on one of three licensing paths, and the right one depends mainly on the base subscription you already own and whether you want Microsoft to be your phone carrier.[1][2] The table gives the quick comparison, and each path is explained underneath.","introHtml":"Most organizations land on one of three licensing paths, and the right one depends mainly on the base subscription you already own and whether you want Microsoft to be your phone carrier.[1][2] The table gives the quick comparison, and each path is explained underneath.
\n","outroMarkdown":"These are Microsoft's US list figures on the verification date, and they exclude the base Teams subscription that every path still requires.[3][7] Availability and rates vary by country and change over time, so treat them as planning numbers rather than a quote.[4][7]","outroHtml":"These are Microsoft's US list figures on the verification date, and they exclude the base Teams subscription that every path still requires.[3][7] Availability and rates vary by country and change over time, so treat them as planning numbers rather than a quote.[4][7]
\n","contentJson":{"rows":[{"cells":["Already on E5","Nothing extra for the license; you add only a PSTN option","Included in E5","Organizations already on Microsoft 365 or Office 365 E5 [2]"]},{"cells":["Teams Phone Standard add-on","Teams Phone Standard, then a PSTN option of your choice","About $10 for the license, plus PSTN [3]","E1, E3, or Business plans that want to pick their own carrier [1]"]},{"cells":["Teams Phone with Calling Plan bundle","Teams Phone plus a Microsoft Calling Plan in one SKU","About $13 pay-as-you-go or $17 domestic [3]","Teams that want Microsoft as the carrier and one line item [4]"]}],"columns":["Licensing path","What you buy","Approx. cost per user / month","Tends to fit"]},"configJson":{},"noteMarkdown":null,"noteHtml":null,"sortOrder":1},{"id":"9e9198ff-c9a1-4416-a897-9812eb685b97","sectionKey":"e5_includes_it","sectionType":"markdown_section","heading":"Microsoft 365 E5 and Office 365 E5 already include it","introMarkdown":"If your users are on Microsoft 365 E5 or Office 365 E5, they already hold the Microsoft 365 Phone System application, so you do not buy a separate Teams Phone Standard license for them.[2][8] Microsoft's licensing documentation lists a legacy Microsoft 365 E5 license, and a Microsoft 365 E5 (no Teams) license paired with a Teams Enterprise license, as combinations that already grant Teams Phone.[2] What an E5 user still needs is a PSTN connection, because the included Phone System entitlement covers the PBX features and internal calling but not the outside line.[2][9] For a company standardizing on E5, the remaining Teams Phone decision is usually which PSTN option to attach, whether a Microsoft Calling Plan or a third-party carrier through Operator Connect or Direct Routing.[6] Checking existing license assignments before you buy anything is worth the few minutes, since paying again for a Phone System entitlement that E5 already covers is a common and avoidable overspend.[2][8]","introHtml":"If your users are on Microsoft 365 E5 or Office 365 E5, they already hold the Microsoft 365 Phone System application, so you do not buy a separate Teams Phone Standard license for them.[2][8] Microsoft's licensing documentation lists a legacy Microsoft 365 E5 license, and a Microsoft 365 E5 (no Teams) license paired with a Teams Enterprise license, as combinations that already grant Teams Phone.[2] What an E5 user still needs is a PSTN connection, because the included Phone System entitlement covers the PBX features and internal calling but not the outside line.[2][9] For a company standardizing on E5, the remaining Teams Phone decision is usually which PSTN option to attach, whether a Microsoft Calling Plan or a third-party carrier through Operator Connect or Direct Routing.[6] Checking existing license assignments before you buy anything is worth the few minutes, since paying again for a Phone System entitlement that E5 already covers is a common and avoidable overspend.[2][8]
\n","outroMarkdown":null,"outroHtml":null,"contentJson":{},"configJson":{},"noteMarkdown":null,"noteHtml":null,"sortOrder":2},{"id":"b2d5c88f-8919-4afa-987d-e7d744ffcbe8","sectionKey":"teams_phone_standard","sectionType":"markdown_section","heading":"Teams Phone Standard, the standalone add-on","introMarkdown":"Teams Phone Standard is the add-on you buy when your base plan does not already include the Phone System application, which covers most Microsoft 365 E1, E3, Business Basic, Business Standard, and Business Premium subscriptions.[1][2] It provides the hosted PBX capabilities Microsoft associates with a phone system, including cloud voicemail, call forwarding, call transfer, auto attendants, call queues, and caller ID, and Microsoft lists it at $10.00 per user per month on an annual commitment.[1][3] Independent pricing guides current to 2026 quote the same $10 figure, and both Microsoft and those guides are explicit that the Standard license includes no outbound minutes and needs a separate PSTN option.[3][7][9] Each variation of the Standard license carries a prerequisite base license, so a tenant buys Teams Phone Standard on top of an existing E3 or Business plan rather than on its own.[2] This path suits organizations that want to choose their own carrier or keep an existing telephony contract, because it separates the license decision from the PSTN decision instead of bundling them.[1][6]","introHtml":"Teams Phone Standard is the add-on you buy when your base plan does not already include the Phone System application, which covers most Microsoft 365 E1, E3, Business Basic, Business Standard, and Business Premium subscriptions.[1][2] It provides the hosted PBX capabilities Microsoft associates with a phone system, including cloud voicemail, call forwarding, call transfer, auto attendants, call queues, and caller ID, and Microsoft lists it at $10.00 per user per month on an annual commitment.[1][3] Independent pricing guides current to 2026 quote the same $10 figure, and both Microsoft and those guides are explicit that the Standard license includes no outbound minutes and needs a separate PSTN option.[3][7][9] Each variation of the Standard license carries a prerequisite base license, so a tenant buys Teams Phone Standard on top of an existing E3 or Business plan rather than on its own.[2] This path suits organizations that want to choose their own carrier or keep an existing telephony contract, because it separates the license decision from the PSTN decision instead of bundling them.[1][6]
\n","outroMarkdown":null,"outroHtml":null,"contentJson":{},"configJson":{},"noteMarkdown":null,"noteHtml":null,"sortOrder":3},{"id":"88c30956-ca62-4686-8d62-4e9370ffb9e1","sectionKey":"teams_phone_with_calling_plan","sectionType":"markdown_section","heading":"Teams Phone with Calling Plan, the all-in-one bundle","introMarkdown":"The Teams Phone with Calling Plan bundle combines the Teams Phone license and a Microsoft Calling Plan in a single SKU, making Microsoft both your phone system and your PSTN carrier.[1][4] Microsoft lists two common variants for US users: a domestic bundle at about $17.00 per user per month that includes 3,000 outbound domestic minutes for the US, UK, and Canada, and a pay-as-you-go bundle at about $13.00 per user per month that adds a phone number with metered outbound minutes billed by usage.[3][4] Minutes from identical domestic plans pool at the tenant level, so 100 US users each allotted 3,000 minutes share a single pool of 300,000 minutes, and calls beyond the pool bill per minute.[4] Incoming minutes are unlimited on these plans.[4] This bundle tends to fit teams that want a single vendor and the least setup, with Microsoft handling both the phone system and the dial tone, and Microsoft's own guidance is to consider it when a Calling Plan is sold in your region and you do not already hold an E5 license that includes Phone System.[2][4] Where calling needs are more complex or a Calling Plan is not sold locally, the separate Standard license plus a third-party PSTN option is the more flexible route.[2][6]","introHtml":"The Teams Phone with Calling Plan bundle combines the Teams Phone license and a Microsoft Calling Plan in a single SKU, making Microsoft both your phone system and your PSTN carrier.[1][4] Microsoft lists two common variants for US users: a domestic bundle at about $17.00 per user per month that includes 3,000 outbound domestic minutes for the US, UK, and Canada, and a pay-as-you-go bundle at about $13.00 per user per month that adds a phone number with metered outbound minutes billed by usage.[3][4] Minutes from identical domestic plans pool at the tenant level, so 100 US users each allotted 3,000 minutes share a single pool of 300,000 minutes, and calls beyond the pool bill per minute.[4] Incoming minutes are unlimited on these plans.[4] This bundle tends to fit teams that want a single vendor and the least setup, with Microsoft handling both the phone system and the dial tone, and Microsoft's own guidance is to consider it when a Calling Plan is sold in your region and you do not already hold an E5 license that includes Phone System.[2][4] Where calling needs are more complex or a Calling Plan is not sold locally, the separate Standard license plus a third-party PSTN option is the more flexible route.[2][6]
\n","outroMarkdown":null,"outroHtml":null,"contentJson":{},"configJson":{},"noteMarkdown":null,"noteHtml":null,"sortOrder":4},{"id":"100c5f09-c349-459e-aa16-5c078d23fdc8","sectionKey":"pstn_still_required","sectionType":"markdown_section","heading":"You still need a way to reach the phone network","introMarkdown":"Whichever Teams Phone license you land on, external calling requires a second choice: a PSTN connection, and only one of the four options carries its own Microsoft license.[6] Microsoft states plainly that a user account must be licensed with the Teams Phone application and also be equipped with a PSTN solution before it can make and receive telephone calls.[6] A tenant can also combine options, for example a Calling Plan in one country and Direct Routing in another.[6]\n\n### Microsoft Calling Plan\n\nA Microsoft Calling Plan is the only PSTN option that needs its own add-on license beyond Teams Phone, because Microsoft becomes your carrier and supplies the numbers and minutes.[4][6] You buy a Calling Plan license, in domestic, international, or pay-as-you-go form, per user, or you buy the Teams Phone with Calling Plan bundle that folds both together.[1][4]\n\n### Operator Connect\n\nOperator Connect lets a certified third-party landline operator provide the PSTN service while you assign their numbers and policies in the Teams admin center.[6][10] It requires a Teams Phone license plus a contract with the operator, and Microsoft does not charge a separate PSTN license because the calling cost comes from that operator.[2][6]\n\n### Teams Phone Mobile\n\nTeams Phone Mobile ties a SIM-enabled mobile number to a user's Teams identity through a certified mobile operator, so one number rings on the cell network and inside Teams.[6] As with Operator Connect, it needs a Teams Phone license plus a contract with the participating operator rather than a separate Microsoft PSTN license.[2][6]\n\n### Direct Routing\n\nDirect Routing connects a carrier of your choice through a certified session border controller that you or a provider manages, and it works in any country.[6] It also needs only a Teams Phone license on the Microsoft side, with the PSTN cost and the SBC handled by you and your operator.[2][6]","introHtml":"Whichever Teams Phone license you land on, external calling requires a second choice: a PSTN connection, and only one of the four options carries its own Microsoft license.[6] Microsoft states plainly that a user account must be licensed with the Teams Phone application and also be equipped with a PSTN solution before it can make and receive telephone calls.[6] A tenant can also combine options, for example a Calling Plan in one country and Direct Routing in another.[6]
\nA Microsoft Calling Plan is the only PSTN option that needs its own add-on license beyond Teams Phone, because Microsoft becomes your carrier and supplies the numbers and minutes.[4][6] You buy a Calling Plan license, in domestic, international, or pay-as-you-go form, per user, or you buy the Teams Phone with Calling Plan bundle that folds both together.[1][4]
\nOperator Connect lets a certified third-party landline operator provide the PSTN service while you assign their numbers and policies in the Teams admin center.[6][10] It requires a Teams Phone license plus a contract with the operator, and Microsoft does not charge a separate PSTN license because the calling cost comes from that operator.[2][6]
\nTeams Phone Mobile ties a SIM-enabled mobile number to a user's Teams identity through a certified mobile operator, so one number rings on the cell network and inside Teams.[6] As with Operator Connect, it needs a Teams Phone license plus a contract with the participating operator rather than a separate Microsoft PSTN license.[2][6]
\nDirect Routing connects a carrier of your choice through a certified session border controller that you or a provider manages, and it works in any country.[6] It also needs only a Teams Phone license on the Microsoft side, with the PSTN cost and the SBC handled by you and your operator.[2][6]
\n","outroMarkdown":null,"outroHtml":null,"contentJson":{},"configJson":{},"noteMarkdown":null,"noteHtml":null,"sortOrder":5},{"id":"50dff32f-8673-4c58-bfe0-d65e67bb74f5","sectionKey":"special_cases","sectionType":"markdown_section","heading":"Special cases: frontline staff, shared phones, and shared numbers","introMarkdown":"Several situations use a different license than the standard per-user Teams Phone add-on, and picking the right one avoids paying for entitlements a device or role does not need.[1][2]\n\n### Frontline workers\n\nFrontline staff on Microsoft 365 F1 or F3, or Office 365 F3, use a Teams Phone Standard for Frontline Workers license rather than the regular Standard add-on, and the tenant must hold the matching frontline base license.[1][2] Microsoft restricts frontline licenses to users who meet its frontline criteria, such as sharing a primary work device or using a device with a screen smaller than 10.9 inches.[1]\n\n### Shared and common area phones\n\nA phone in a lobby, break room, or warehouse that many people use is licensed with a Microsoft Teams Shared Space license, which Microsoft renamed from Teams Shared Devices in 2026 and which already includes the Phone System application.[1][2] A Teams Rooms Pro license similarly includes Phone System for meeting-room hardware, so you do not add a separate Teams Phone license to those accounts.[1][2]\n\n### Auto attendants and call queues\n\nThe automated menus and hold queues that route a main business line run on resource accounts, not on a person's license, and each uses a Microsoft Teams Phone Resource Account license.[2] You still attach a PSTN number, and where a Microsoft service number is used, a pay-as-you-go calling plan license, to the resource account.[2][4]\n\n### Shared Calling\n\nShared Calling lets many users make and receive outbound PSTN calls through the number of a single resource account, so those users need only a Teams Phone license and no dedicated number or personal calling plan.[2] The resource account holds the number and, if it uses a Microsoft service number, a pay-as-you-go calling plan license.[2][4]","introHtml":"Several situations use a different license than the standard per-user Teams Phone add-on, and picking the right one avoids paying for entitlements a device or role does not need.[1][2]
\nFrontline staff on Microsoft 365 F1 or F3, or Office 365 F3, use a Teams Phone Standard for Frontline Workers license rather than the regular Standard add-on, and the tenant must hold the matching frontline base license.[1][2] Microsoft restricts frontline licenses to users who meet its frontline criteria, such as sharing a primary work device or using a device with a screen smaller than 10.9 inches.[1]
\nA phone in a lobby, break room, or warehouse that many people use is licensed with a Microsoft Teams Shared Space license, which Microsoft renamed from Teams Shared Devices in 2026 and which already includes the Phone System application.[1][2] A Teams Rooms Pro license similarly includes Phone System for meeting-room hardware, so you do not add a separate Teams Phone license to those accounts.[1][2]
\nThe automated menus and hold queues that route a main business line run on resource accounts, not on a person's license, and each uses a Microsoft Teams Phone Resource Account license.[2] You still attach a PSTN number, and where a Microsoft service number is used, a pay-as-you-go calling plan license, to the resource account.[2][4]
\nShared Calling lets many users make and receive outbound PSTN calls through the number of a single resource account, so those users need only a Teams Phone license and no dedicated number or personal calling plan.[2] The resource account holds the number and, if it uses a Microsoft service number, a pay-as-you-go calling plan license.[2][4]
\n","outroMarkdown":null,"outroHtml":null,"contentJson":{},"configJson":{},"noteMarkdown":null,"noteHtml":null,"sortOrder":6},{"id":"c237bf8f-cdc3-4847-8b99-c0292bd456cc","sectionKey":"trade_offs","sectionType":"markdown_section","heading":"Trade-offs and things to check before you buy","introMarkdown":"The license is only part of the monthly cost, and a few details decide whether your first estimate holds up.\n\n### The license is not the whole bill\n\nA Teams Phone Standard license cannot call the outside world on its own, so the real per-user cost includes a PSTN option on top, whether that is a Microsoft Calling Plan, an Operator Connect subscription, or the SBC and carrier contract behind Direct Routing.[3][6] Budgeting for the license alone understates what a working deployment costs.[7][9]\n\n### Calling Plan coverage is uneven\n\nMicrosoft Calling Plans and the bundle are sold only in certain countries, so an organization with offices outside that list often mixes connectivity types by region and cannot rely on a single all-Microsoft setup everywhere.[4][6]\n\n### Watch the base-license change from 2024\n\nSince April 1, 2024, new enterprise customers buy Teams separately from the Office and Microsoft 365 E1, E3, and E5 suites, so a Teams Phone add-on now sits on top of both a suite and a standalone Teams license for those customers.[1] Organizations that held a Teams-inclusive suite before that date can keep renewing it.[1]\n\n### Confirm what E5 already covers\n\nBecause E5 includes Phone System, the most common avoidable cost is buying Teams Phone Standard for users who already have it, and a quick license audit settles it.[2][8]","introHtml":"The license is only part of the monthly cost, and a few details decide whether your first estimate holds up.
\nA Teams Phone Standard license cannot call the outside world on its own, so the real per-user cost includes a PSTN option on top, whether that is a Microsoft Calling Plan, an Operator Connect subscription, or the SBC and carrier contract behind Direct Routing.[3][6] Budgeting for the license alone understates what a working deployment costs.[7][9]
\nMicrosoft Calling Plans and the bundle are sold only in certain countries, so an organization with offices outside that list often mixes connectivity types by region and cannot rely on a single all-Microsoft setup everywhere.[4][6]
\nSince April 1, 2024, new enterprise customers buy Teams separately from the Office and Microsoft 365 E1, E3, and E5 suites, so a Teams Phone add-on now sits on top of both a suite and a standalone Teams license for those customers.[1] Organizations that held a Teams-inclusive suite before that date can keep renewing it.[1]
\nBecause E5 includes Phone System, the most common avoidable cost is buying Teams Phone Standard for users who already have it, and a quick license audit settles it.[2][8]
\n","outroMarkdown":null,"outroHtml":null,"contentJson":{},"configJson":{},"noteMarkdown":null,"noteHtml":null,"sortOrder":7},{"id":"b56aa35c-8357-47ed-a38f-afaadb2af47b","sectionKey":"what_it_is_not","sectionType":"markdown_section","heading":"What a Teams Phone license is not","introMarkdown":"A Teams Phone license is the calling entitlement inside Microsoft 365, not a phone line, a dial tone, or a meetings feature, and a few common mix-ups are worth clearing up.\n\n### It is not a Calling Plan\n\nA Microsoft Calling Plan is one way to add PSTN service to Teams Phone, not another name for the license. You can run Teams Phone with Operator Connect, Teams Phone Mobile, or Direct Routing and never buy a Microsoft Calling Plan.[2][6]\n\n### It is not Audio Conferencing\n\nAudio Conferencing lets people dial in to a Teams meeting by phone, and Microsoft states it does not require a Teams Phone license. The two are separate add-ons that solve different problems.[1]\n\n### It is not basic Teams calling\n\nEvery Teams user can already call another Teams user over the internet without any Teams Phone license.[5] The Teams Phone license is the separate piece that adds PBX features and, with a PSTN option, the ability to dial real phone numbers.[5][9]\n\n### It is not billed as one flat number\n\nThe advertised $10, $13, or $17 figures cover the license or the license-plus-minutes layer, not the base subscription underneath, so the true per-user cost is the sum of the layers a given user needs.[3][7]","introHtml":"A Teams Phone license is the calling entitlement inside Microsoft 365, not a phone line, a dial tone, or a meetings feature, and a few common mix-ups are worth clearing up.
\nA Microsoft Calling Plan is one way to add PSTN service to Teams Phone, not another name for the license. You can run Teams Phone with Operator Connect, Teams Phone Mobile, or Direct Routing and never buy a Microsoft Calling Plan.[2][6]
\nAudio Conferencing lets people dial in to a Teams meeting by phone, and Microsoft states it does not require a Teams Phone license. The two are separate add-ons that solve different problems.[1]
\nEvery Teams user can already call another Teams user over the internet without any Teams Phone license.[5] The Teams Phone license is the separate piece that adds PBX features and, with a PSTN option, the ability to dial real phone numbers.[5][9]
\nThe advertised $10, $13, or $17 figures cover the license or the license-plus-minutes layer, not the base subscription underneath, so the true per-user cost is the sum of the layers a given user needs.[3][7]
\n","outroMarkdown":null,"outroHtml":null,"contentJson":{},"configJson":{},"noteMarkdown":null,"noteHtml":null,"sortOrder":8},{"id":"3c7f6938-45c6-4266-8b14-bd65a449a7bf","sectionKey":"contributor_perspective","sectionType":"markdown_section","heading":"How this answer was researched","introMarkdown":"The licensing structure, SKU names, and PSTN rules here come primarily from Microsoft's own Teams documentation on Microsoft Learn, including the Teams add-on licensing, Teams Phone licensing, Calling Plans, and PSTN connectivity pages, which are the authoritative source for how Teams Phone is licensed.[1][2][4][5][6] Pricing was taken from Microsoft's published Teams Phone page and corroborated with independent pricing and licensing guides current to 2026.[3][7][8][9] Microsoft revises Teams license names, prices, and plan inclusions regularly, and it changed how Teams is packaged with Microsoft 365 suites in 2024, so the specific dollar figures and license names here reflect what the cited pages stated on the verification date rather than a permanent quote.[1][3] Availability of Calling Plans and the bundle also varies by country. Practitioners who deploy, administer, or resell Teams Phone are welcome to suggest corrections or additions, which are checked against Microsoft's primary documentation before any update.","introHtml":"The licensing structure, SKU names, and PSTN rules here come primarily from Microsoft's own Teams documentation on Microsoft Learn, including the Teams add-on licensing, Teams Phone licensing, Calling Plans, and PSTN connectivity pages, which are the authoritative source for how Teams Phone is licensed.[1][2][4][5][6] Pricing was taken from Microsoft's published Teams Phone page and corroborated with independent pricing and licensing guides current to 2026.[3][7][8][9] Microsoft revises Teams license names, prices, and plan inclusions regularly, and it changed how Teams is packaged with Microsoft 365 suites in 2024, so the specific dollar figures and license names here reflect what the cited pages stated on the verification date rather than a permanent quote.[1][3] Availability of Calling Plans and the bundle also varies by country. Practitioners who deploy, administer, or resell Teams Phone 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":9}],"citations":[{"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":"Teams Phone requires a separate add-on license. For Teams Phone only, buy a Teams Phone Standard license. For users to make and receive external calls using the PSTN, you'll need to choose a PSTN connectivity option as well.","quoteText":null,"sourceRole":"PRIMARY","verifiedAt":"2026-07-17T00:00:00","supportsText":"Teams Phone requires a separate add-on license; Teams Phone Standard as hosted PBX add-on; Microsoft Teams Calling Plans and Teams Phone with Calling Plan bundle; Teams Phone Standard for Frontline Workers; Teams Shared Space (formerly Teams Shared Devices) and Teams Rooms licenses; the April 1, 202","domain":"learn.microsoft.com","publisherName":"Microsoft Learn"},{"title":"Teams Phone licensing - Microsoft Teams","url":"https://learn.microsoft.com/en-us/microsoftteams/teams-phone-licensing","excerpt":"In the case where any Microsoft 365 E5 license is used, it isn't necessary to also assign the stand-alone Microsoft Teams Phone Standard license.","quoteText":null,"sourceRole":"PRIMARY","verifiedAt":"2026-07-17T00:00:00","supportsText":"Users need the Microsoft Teams and Microsoft 365 Phone System applications; E5 already includes Phone System so no separate Teams Phone Standard is needed; Teams Phone Standard variations and their prerequisite base licenses; shared device and Teams Rooms Pro licenses include Phone System; resource ","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. A separate license for Microsoft Teams is required.","quoteText":null,"sourceRole":"PRIMARY","verifiedAt":"2026-07-17T00:00:00","supportsText":"Teams Phone Standard at $10.00 per user per month paid yearly; Teams Phone with Pay-as-you-go Calling at $13.00; Teams Phone with Calling Plan (domestic) at $17.00 with 3,000 outbound domestic minutes for the US, UK, and Canada; 99.999% uptime; a separate license for Microsoft Teams is required","domain":"microsoft.com","publisherName":"Microsoft"},{"title":"Microsoft Teams Calling Plans","url":"https://learn.microsoft.com/en-us/microsoftteams/calling-plans-for-office-365","excerpt":"if you have 100 users located in the United States with a Domestic Calling Plan assigned, each user is allocated 3,000 minutes and they all share a pool of 300,000 minutes.","quoteText":null,"sourceRole":"PRIMARY","verifiedAt":"2026-07-17T00:00:00","supportsText":"Domestic, International, and Pay-As-You-Go Calling Plans; unlimited incoming minutes; domestic minutes pool at the tenant level (100 US users at 3,000 minutes share 300,000 minutes); you must first purchase a Teams Phone add-on license before a Calling Plan, or buy the bundle","domain":"learn.microsoft.com","publisherName":"Microsoft Learn"},{"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... 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 is call control and PBX in the Microsoft 365 cloud; internal Teams calls stay off the PSTN and carry no toll; a Teams Phone deployment requires both the Teams Phone application license and at least one PSTN operator solution; a PSTN solution is separate from a Teams Phone license","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":"A user account must be licensed with the Teams Phone application and also equipped with a PSTN solution; the four connectivity models (Microsoft Calling Plan, Operator Connect, Teams Phone Mobile, Direct Routing); Calling Plan requires a Calling Plan license while Operator Connect, Teams Phone Mobil","domain":"learn.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/mo... Teams Phone with Pay-as-You-Go Calling, $13/user/mo... Teams Phone with Calling Plan, $17/user/mo.","quoteText":null,"sourceRole":"INDEPENDENT","verifiedAt":"2026-07-17T00:00:00","supportsText":"Independent 2026 corroboration of Teams Phone Standard at $10 per user per month, Teams Phone with Pay-as-you-go Calling at $13, and Teams Phone with Calling Plan at $17; each plan still requires an additional Microsoft Teams subscription","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":"This extra Teams license is included in Office 365 E5 and Microsoft 365 E5.","quoteText":null,"sourceRole":"INDEPENDENT","verifiedAt":"2026-07-17T00:00:00","supportsText":"Independent corroboration that a base Microsoft 365 or Office 365 suite is required, that the Teams Phone license is included in Office 365 E5 and Microsoft 365 E5, and that Teams Phone alone does not provide PSTN calling until a connectivity option is added","domain":"pure-ip.com","publisherName":"Pure IP"},{"title":"Your Complete Guide: Understanding Microsoft Teams Voice Licensing","url":"https://www.dataprise.com/resources/blog/microsoft-teams-voice-licensing/","excerpt":"Users can make online, peer-to-peer calls using Teams, but they will need an additional Calling Plan add-on to be able to make outbound calls.","quoteText":null,"sourceRole":"INDEPENDENT","verifiedAt":"2026-07-17T00:00:00","supportsText":"Independent corroboration of the layered voice licensing model, that E5 includes the Phone System license, and that Phone System alone lets users receive and transfer calls but needs an additional Calling Plan to make outbound PSTN calls","domain":"dataprise.com","publisherName":"Dataprise"},{"title":"Microsoft Teams Operator Connect","url":"https://www.atlantech.net/campaign/operator-connect","excerpt":"Your IT Administrator can assign phone numbers and policies through the Microsoft Teams Admin Center.","quoteText":null,"sourceRole":"SUPPORTING","verifiedAt":"2026-07-17T00:00:00","supportsText":"Business-facing corroboration that Operator Connect is a managed third-party PSTN option for Teams where phone numbers and policies are assigned in the Teams admin center; corroborated by [2] and [6]","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":"67fc8518-2dba-4c3b-8029-0a39c59afd28","slug":"what-is-the-difference-between-teams-phone-and-a-calling-plan","question":"What is the difference between Teams Phone and a Calling Plan?","publishedAt":"2026-07-18T03:41:44.225","confidenceScore":95,"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 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.","url":"/q/what-is-the-difference-between-teams-phone-and-a-calling-plan"},{"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 Teams Phone license do I need?","text":"What Teams Phone license do I need?","url":"https://www.answerstack.io/q/what-teams-phone-license-do-i-need","answerCount":1,"datePublished":"2026-07-18T03:41:33.762","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":"To turn Microsoft Teams into a working phone, a user needs three things stacked together: a base Microsoft 365 or Teams subscription, a Teams Phone license (the entitlement Microsoft records internally as the Microsoft 365 Phone System application), and a way to connect to the public switched telephone network (PSTN) for calls outside your organization.[2][5] If your users are on Microsoft 365 E5 or Office 365 E5, the Teams Phone license is already included, so you add only a PSTN option; on E1, E3, or a Business plan, you buy a Teams Phone Standard add-on, listed by Microsoft at $10.00 per user per month.[2][3] Teams Phone on its own covers internal calls and PBX features such as auto attendants and voicemail, but it cannot dial a regular phone number until you attach a PSTN option like a Microsoft Calling Plan, Operator Connect, Teams Phone Mobile, or Direct Routing.[5][6] Microsoft also sells a Teams Phone with Calling Plan bundle, around $17.00 per user per month for a domestic plan in the US, UK, and Canada, or $13.00 for pay-as-you-go, which folds the license and Microsoft-carrier calling into one SKU.[3][4]","url":"https://www.answerstack.io/q/what-teams-phone-license-do-i-need","upvoteCount":0,"datePublished":"2026-07-18T03:41:33.762","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":"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 licensing - Microsoft Teams","url":"https://learn.microsoft.com/en-us/microsoftteams/teams-phone-licensing"},{"@type":"CreativeWork","name":"Microsoft Teams Phone","url":"https://www.microsoft.com/en-us/microsoft-teams/microsoft-teams-phone"},{"@type":"CreativeWork","name":"Microsoft Teams Calling Plans","url":"https://learn.microsoft.com/en-us/microsoftteams/calling-plans-for-office-365"},{"@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 - PSTN connectivity options","url":"https://learn.microsoft.com/en-us/microsoftteams/pstn-connectivity"},{"@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":"Your Complete Guide: Understanding Microsoft Teams Voice Licensing","url":"https://www.dataprise.com/resources/blog/microsoft-teams-voice-licensing/"},{"@type":"CreativeWork","name":"Microsoft Teams Operator Connect","url":"https://www.atlantech.net/campaign/operator-connect"}]}}}