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Microsoft Teams Phone Standard: the Teams Phone license explained

Teams Phone licensing has three layers: a plan that includes Teams, a Teams Phone licence, and a way to reach the phone network. This page covers the licence layer and what an organisation pays for.

In short

Microsoft Teams Phone Standard is the per-user add-on licence that turns Microsoft Teams into a phone system, with voicemail, transfer, auto attendants and call queues. Each user also needs a plan that includes Teams and a connection to the phone network. Forever Systems can quote Teams Phone licences with calling, billed monthly, terms confirmed at quote.

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What Teams Phone Standard is

Teams Phone Standard is the licence that gives a Teams user phone system features. Microsoft describes it (opens in a new tab) as an add-on licence to Teams that provides a hosted telephone service, with Private Branch Exchange (PBX) capabilities such as cloud voicemail, call forwarding, call transfer, auto attendants, call queues and caller ID.

It does not include calls to outside numbers. Microsoft is explicit that a connection to the phone network is separate from the Teams Phone licence. Teams Phone features lists what the licence unlocks.

The three layers of a Teams Phone licence plan

  1. A plan that includes Teams. Microsoft 365 Business Basic, Standard or Premium, Teams Essentials with Microsoft Entra ID, or an Enterprise suite with Teams Enterprise.
  2. A Teams Phone licence. Teams Phone Standard for most users, or the frontline version for staff who qualify.
  3. A connection to the phone network. A Microsoft Calling Plan, Operator Connect, Teams Phone Mobile or Direct Routing. Our Teams calling service is the Direct Routing option we set up.

Auto attendants, call queues and shared devices each have their own licence, shown in the table below.

Teams Phone licences and add-ons

Teams Phone licences and add-ons
LicenceWhat it doesNotes
Teams Phone StandardAdds PBX features to a Teams user: voicemail, forwarding, transfer, caller ID, auto attendants and call queuesNeeds a connection to the phone network for outside calls
Teams Phone with Calling PlanA bundle of Teams Phone and a Microsoft Calling PlanMicrosoft is the carrier. See Microsoft Teams Calling Plans
Microsoft Teams Calling PlansMicrosoft-provided calling, added to Teams PhoneDomestic, International and Pay-As-You-Go plans
Communication CreditsPays for calls beyond plan minutes and for toll-free numbersUsed with Microsoft Calling Plans and Audio Conferencing
Teams Phone Resource AccountLicenses the resource account behind each auto attendant or call queueMicrosoft states there is no cost. It is never assigned to a person
Teams Phone Standard for Frontline WorkersTeams Phone for staff on Microsoft 365 or Office 365 Frontline plansOnly for users who meet Microsoft's frontline criteria
Audio ConferencingDial-in numbers for Teams meetingsDoes not need Teams Phone. Included in the E5 subscription
Microsoft Teams Shared SpaceLicenses shared devices in common areasNamed Microsoft Teams Shared Devices before April 2026

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Which Microsoft 365 plans can add Teams Phone

Microsoft's licensing page lists the plans that can take Teams Phone with a separate connection to the phone network:

Which Microsoft 365 plans can add Teams Phone
Plan familyPlans Microsoft listsNotes
BusinessTeams Essentials with Microsoft Entra ID; Microsoft 365 Business Basic, Standard or PremiumThe plan must be a version that includes Teams
EnterpriseMicrosoft 365 E3 or Office 365 E1 or E3 (no Teams) plus Teams Enterprise; Teams Enterprise on its ownSuites that include Teams are no longer sold to new customers
Enterprise E5Microsoft 365 E5 or Office 365 E5 (no Teams) plus Teams EnterpriseMicrosoft's Microsoft 365 E5 plan page lists Teams Phone among its features
FrontlineMicrosoft 365 F1 and F3; Office 365 F3Use Teams Phone Standard for Frontline Workers
Education and governmentOffice 365 A1, Microsoft 365 A3 and Microsoft 365 G3, with A5 and G5 also listedAsk us to check eligibility at quote

Does Teams Enterprise include Teams Phone? No. Microsoft says the Teams Enterprise licence includes native calling between Teams users, and the Teams Phone licence unlocks the phone system features. Teams Enterprise is one of the plans that Teams Phone is added to.

The 2024 change for Enterprise customers. Since 1 April 2024, new Enterprise customers who want Teams take two products: an E1, E3 or E5 suite without Teams, and Teams Enterprise. Business and Frontline suites are available with and without Teams.

Teams Phone Standard and the frontline version

Teams Phone Standard for Frontline Workers gives frontline staff the same phone system add-on. Microsoft sets two conditions. The tenant must hold Microsoft 365 or Office 365 Frontline Worker licences, and each user must meet at least one of its frontline criteria, for example using a primary device with a single screen smaller than 10.9 inches, or sharing their primary work device with other frontline users during or across shifts.

Office-based staff take Teams Phone Standard. Where a workforce is mixed, both licences can sit in the same tenant.

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What drives the cost of Teams Phone

Teams Phone is priced per user, and the licence is only one part of the monthly cost. What changes the figure is:

  • How many users need a number and phone system features, and how many only need calling inside Teams
  • Which licence each user takes: Teams Phone Standard, the frontline version, or a suite that already has Teams Phone
  • The calling option: plan minutes, or calls billed by use
  • Numbers: how many user numbers and service numbers, new or ported
  • Set-up: the auto attendants, call queues and sites to configure

Contact us with your user numbers and current plans and we will come back with a quote.

How to get Teams Phone licences

Teams Phone licences are added to the Microsoft 365 tenant you already use and assigned to users there. We supply them together with our Teams calling service, so licences, numbers and calls are quoted in one place. Licences can be billed monthly, with terms confirmed at quote.

Before quoting we check the plan each user holds, because that decides which Teams Phone licence applies and whether one is already included.

Sources (checked 11 November 2026): Microsoft Learn, "Microsoft Teams add-on licenses", "Teams Calling features", "Microsoft Teams Phone Resource Account licenses" and "What are Communication Credits?"; Microsoft's Microsoft 365 E5 plan page.

How Forever Systems helps with Teams Phone

Forever Systems can quote and set up Microsoft Teams Phone for your organisation and connect it to the phone network.

  • Licence and calling check: we look at the Microsoft 365 plan you hold and recommend the Teams Phone licences and calling option that fit
  • Numbers kept: we plan and manage the porting of your existing numbers
  • Call flows set up: auto attendants, call queues and opening hours built and tested with you
  • Works with what you use: the Teams apps on desktop and mobile
  • Licensing in one place: licences can be billed monthly, with terms confirmed at quote

We work with businesses, schools, charities and public sector organisations. Pricing depends on users, licences and calling, so ask us for a quote.

Frequently asked questions

What is the Teams Phone Standard licence?

Teams Phone Standard is the per-user add-on that gives a Teams user phone system features: a phone number, cloud voicemail, transfer, forwarding, caller ID, auto attendants and call queues. It needs a connection to the phone network for calls to ordinary phone numbers.

Do I need a separate licence for Teams Phone?

With most plans, yes. Teams Phone Standard is added to a plan that includes Teams, such as Microsoft 365 Business Standard. Microsoft lists Teams Phone among the features of Microsoft 365 E5, so users on that plan need only a connection to the phone network.

Does Teams Enterprise include Teams Phone?

No. Microsoft says the Teams Enterprise licence includes native calling between Teams users, and the Teams Phone licence unlocks the phone system features. Teams Phone Standard is added to Teams Enterprise.

How much does Teams Phone cost?

It depends on the number of users, the licence each one takes, the calling option, the numbers you need and the set-up. Teams Phone is a per-user monthly add-on, so ask us for a quote based on your users and plans.

Can Microsoft 365 Business Basic use Teams Phone?

Yes. Microsoft lists Microsoft 365 Business Basic, Standard and Premium, and Teams Essentials with Microsoft Entra ID, among the plans that can add Teams Phone.

Do auto attendants and call queues need a licence?

Yes. Each resource account behind an auto attendant or call queue needs a Teams Phone Resource Account licence, which Microsoft supplies at no cost. Microsoft says a Teams Phone Standard licence should not be assigned to a resource account.

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