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Microsoft Teams License Options for Enterprises

May 3, 2021

Microsoft Teams License Options for Enterprises

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

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

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

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

The Microsoft Teams add-on licenses are: 

  1. Phone System: $8 per user/month 
  2. Audio Conferencing: $4 per user/month 
  3. Domestic Calling Plan: $12 per user/month 
  4. Domestic + International Calling Plan: $24 per user/month 
  5. Microsoft 365 Business Voice: $20 per user/month 

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


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

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

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

  • Phone System license is required for the purchase of Audio Conferencing and Calling Plans add-ons
  • Phone System license is included in Microsoft 365 E5 and Office 365 E5
  • For calls to and from outside the organization, purchase a Calling Plan to connect to the PTSN 


For $4 per user per month, the Audio Conferencing license will help you plan and lead meetings.

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

  • Phone System license is required for Audio Conferencing 
  • Audio Conferencing license is included in Microsoft 365 E5 and Office 365 E5 


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

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

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

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

Get Microsoft 365 Business Voice for $20 per user each month 

Microsoft 365 Business Voice is a bundle of the Phone System, Domestic Calling Plan, and Audio Conferencing licenses. Designed as a replacement for traditional in-house phone systems, this license allows organizations to set up toll and toll-free numbers, call menus, and more. Business Voice is a great option for organizations with fewer than 300 people and are already using a Microsoft 365 plan. 

  • Can be added to a qualifying Microsoft 365 account, maximum of 300 seats 
  • Qualifying plans include Microsoft 365 Business Basic, Business Standard, Business Premium, E3 or A3; Office 365 F3, E1, E3, A1, or A3 
  • Microsoft 365 Business Voice is an add-on subscription only and cannot be purchased on its own
By integrating phone services directly into your cloud environment, you can enable users to make calls from anywhere without the complicated systems that are difficult and expensive to manage. 


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


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

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