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Licensing

Microsoft Licensing FAQs

This content is for informational purposes only. MICROSOFT MAKES NO WARRANTIES, EXPRESS OR IMPLIED, ON THIS PAGE. Please see full disclaimer below.

Microsoft Teams

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General


Q: Are the prices for Microsoft Teams services tax inclusive?

Prices for Microsoft Teams services are tax inclusive in the United States and Puerto Rico. In all other countries the prices for these services are tax exclusive.

Microsoft Teams with Microsoft 365 suites


Q: What are the most recent updates regarding the packaging of Teams with Microsoft 365 suites?

As previously announced, the following changes to commercial Microsoft 365, Office 365, and Microsoft Teams packaging and pricing worldwide are effective as of November 1, 2025:

  1. Reverse the end of sale for all Microsoft 365 & Office 365 Enterprise suites with Teams.
  2. Reduce the price of all Microsoft 365 and Office 365 Enterprise and Business suites without Teams, as well as Microsoft 365 F3 without Teams, to meet required price deltas. 
  3. Increase the price of Microsoft Teams Enterprise and Microsoft Teams EEA to align with Enterprise price delta.

Q: Why are we making these changes regarding the packaging of Teams with Microsoft 365 and Office 365 suites?

Microsoft has entered a legally-binding agreement with the European Commission (“Microsoft’s Commitments”) to resolve concerns raised with the Commission regarding our inclusion of Teams in our Microsoft 365 and Office 365 suites. We are making these licensing changes to comply with those Commitments. Read the official announcement to learn more.

Q: Why are we making these changes to pricing of Microsoft 365 and Office 365 suites?

Microsoft’s Commitments require us to establish minimum price deltas between Microsoft 365 and Office 365 suites with Teams and the equivalent suites without Teams, and to price Teams standalones at or above the deltas, as follows:
Microsoft 365 and Office 365 Suites:
  • Microsoft 365 E3/E5, Office 365 E3/E5 → Minimum price delta: €8.00 ($8.55)
  • Microsoft 365 Business Standard/Premium, Office 365 E1 → Minimum price delta: €3.00 ($3.21)
  • Microsoft 365 Business Basic → Minimum price delta: €1.50 ($1.61)
  • Microsoft 365 F3 → Minimum price delta: €1.00 ($1.07)
Teams Standalone Products:
  • Microsoft Teams Enterprise / Microsoft Teams EEA → Minimum price: €8.00 ($8.55)
  • Microsoft Teams Essentials → Minimum price: €3.00 ($3.21)
These price deltas will be held constant in USD for the duration of the enforcement period (7 years). Exact price deltas in other currencies (including Euro) may fluctuate over time due to changes in foreign exchange rates. 

Q: What does it mean that Microsoft is reversing end of sale on Enterprise suites with Teams?

As of November 1, 2025, these suites will again be available to all customers, worldwide, in all channels. Enterprise suites with Teams (Microsoft 365 E3/E5 and Office 365 E1/E3/E5) have been unavailable to new customers in the EEA since October 2023 and to new customers in the rest of the world since April 2024. 

Q: Will there still be different “no Teams” suites for the EEA and Switzerland vs. the rest of the world?

Yes.

Q: How will these changes regarding the packaging of Teams with Microsoft 365 and Office 365 suites affect existing customers?

Existing customers in all segments, like new customers in all segments, will be subject to the new packaging, pricing, and discounting policies outlined above as of November 1, 2025.
Customers who currently subscribe to Microsoft 365 or Office 365 suites without Teams or to Teams Enterprise standalones will be subject to the new pricing outlined above at their next renewal after November 1, 2025. Pricing for Microsoft 365 and Office 365 suites with Teams will not be affected.
Customers who currently subscribe to Microsoft 365 E3 or E5 “Original” SKUs will need to transition to the equivalent Unified SKU at their next renewal.

Q: How will these changes regarding the packaging of Teams with Microsoft 365 and Office 365 suites affect new customers?

New customers in all segments, like existing customers in all segments, will be subject to the new packaging, pricing, and discounting policies outlined above as of November 1, 2025. 
New Enterprise customers will have more options than before. They will once again be able to purchase Enterprise suites that include Teams across all channels where those suites are sold. 

Q: Do Microsoft’s Commitments to the European Commission apply to Consumer, Academic, US Government, or Nonprofit SKUs?

Consumer, Academic, US Government, and Nonprofit-specific SKUs are not currently impacted.

Q: Will these changes regarding the packaging of Teams with Microsoft 365 and Office 365 suites affect the options available to non-US Governments?

Government entities that purchase from the commercial price list – including many non-US governments – will be affected by these changes in the same ways as commercial customers. 

Q: Do Microsoft’s Commitments affect trials of Teams or suites that include Teams?

Yes. Effective October 1, 2025, all Microsoft Teams trials in the European Economic Area (EEA) – including trials of suites that include Microsoft Teams – will be limited to 31 days. 

Q: Can customers on multi-year contracts switch to “no Teams” suites at Anniversary?

Yes. In accordance with Microsoft’s Commitments, EEA customers on multi-year contracts, regardless of channel, will be able to switch to “no Teams” suites at Anniversary for the next five years while retaining their discounts.  

Q: Where can I read the terms of Microsoft’s Commitments to the European Commission?

They are available alongside the European Commission’s statement


Audio Conferencing


Q: What is Audio Conferencing?

Audio Conferencing allows meeting attendees to dial-in to Teams meetings from virtually any device. Meeting organizers can also dial-out to attendees to connect them to the audio portion of the meeting. Companies can consolidate conferencing solutions and simplify operations while reducing complexity and support costs for IT while enabling employees to work from virtually anywhere. 

Q: What are Communications Credits?

Communication Credits are a billing tool to pay for consumed minutes of Audio-Conferencing and Microsoft Calling Plan overages. Communication Credits support multiple billing use cases, including:
  • All usage of toll-free numbers that support your tenant’s Audio-Conferencing service, Teams Phone auto attendants, and Teams Phone call queues.
  • Toll-free calls are billed per minute and require a positive Communication Credits balance.
  • Dialing out from a Teams meeting to add an audio conference participant who is in a country or region outside of your domestic calling area. This includes international support of the Call me feature.
  • Overages related to Teams meeting dial-out calls that exceed the pool of Audio-Conferencing minutes.
  • Overages of any calls (domestic or international) beyond the Calling Plan’s included minutes.
  • All outgoing calls when using a Pay-As-You-Go Calling Plan.

Q: What is pay-as-you-go consumption (also known as post-paid billing) in the new commerce experience (NCE)?

Pay-as-you-go consumption enables commercial customers purchasing through the new commerce experience (NCE) to pay for any per-minute charges without the need to pre-fund a Communications Credits account. These customers will instead be billed in arears for any charges monthly.

Q: Why are there published rates for countries where Microsoft does not offer any toll or toll-free numbers?

Rates are published in advance in anticipation that new inventory for toll free numbers become available at a future date. This will allow customers to begin to utilize service right away once inventory is available to them.  

Q: What options do customers have for getting a Calling Plan with Teams Phone?

Customers can buy the Calling Plan if it is offered in their purchasing program and geography. In addition, using on-premises voice connectivity, customers can connect Teams Phone (Phone System) to their existing telephony infrastructure, such as on-premises SIP trunks offered through their local/regional telecommunications provider. This enables Teams Phone to perform call control and call management features.  

Q: Where is Audio Conferencing available?

Audio Conferencing is subject to geographical and channel availability. Visit https://learn.microsoft.com/MicrosoftTeams/calling-plan-overview for details.

Q: What features are included with Audio-Conferencing?

Audio-Conferencing will includes the following features:
Tolled Dial-in: This feature enables invitees to meetings organized by a user licensed for Audio-Conferencing to join the audio portion of the meeting by dialing a phone number and entering a conference passcode. The number that is generated for meeting attendees to use is a general dial-in number that is assigned at the tenant level and is not specific to an individual user. There are limits on the use of this feature designed to prevent abuse and/or fraud.
Dial-out: This feature enables attendees of meetings organized by a user licensed for Audio-Conferencing to do the following when dialing-out to Zone A countries:
  • Dial-out to other users from the meeting
  • Transfer an in-progress meeting to a PSTN endpoint from within the meeting
  • At meeting join, dial-out to a phone number
  • At meeting join from a mobile client, dial-out to the mobile phone
Toll-free dial in: This feature enables attendees of meetings organized by a user licensed for Audio-Conferencing to join meeting by dialing a toll-free number and entering a pin. Toll-free numbers can either be Domestic or international.

Q: Why has Microsoft established a distinction between the Zone A/Included and Pay as You Go countries?

Telephony service charges vary greatly from one country to another. While some countries have relatively low telephony rates, other countries are significantly more expensive. It is Microsoft’s goal to include Dial-out Conferencing services to all countries where Audio Conferencing is available, however the increased cost of telephony services in several countries makes it prohibitive for Microsoft to do so. 

Q: My company is located in an Audio Conferencing Sell-to country. How can we license users located in countries that are not on that list?

Companies with users located in various countries around the world can purchase Audio Conferencing in Sell-to countries (e.g., the United States) and provision their users anywhere in the world with those licenses.

Q: In what scenario would a customer choose the paid Audio Conferencing subscription over the free Audio Conferencing with dial-out to USA/Canada subscription?

Customers with a high enough need for dial-out to Zone A countries other than US/Canada may find it more cost effective to purchase the subscription rather than pay on a per-minute basis. 

Q: Is the dial-out minute pool for the $0 Audio Conferencing with dial-out to USA/CAN add-on SKU calculated based on purchased or assigned licenses?

The dial-out minute pool for the $0 Audio Conferencing with dial-out to USA/CAN add-on SKU is calculated based on the number of licenses assigned to users.

Q: Can customers have a mix of paid Audio Conferencing (with dial-out to Zone A countries) and Audio Conferencing with dial-out to USA/Canada users?

Yes. In this case, the included dial-out minutes are pooled separately by offer.

Q: Do customers with a mix of paid legacy Audio Conferencing and Audio Conferencing with dial-out to USA/CAN users need a separate communications credit account for each pool?

No. Customers use a single communications credits account for any related charges. 

Q: Are customers with the $0 Audio Conferencing with dial-out to USA/Canada add-on SKU eligible for On-network conferencing?

Yes, customers with the $0 Audio Conferencing with dial-out to USA/CAN add-on SKU are eligible for On-network conferencing.
To learn more about On-network Conferencing, please visit https://learn.microsoft.com/microsoftteams/audio-conferencing-on-network.

Q: What about an external user that requests a call back, or an outbound call to a non-licensed user – are those minutes subtracted from the meeting organizer?

All outbound calls will consume minutes. For example, if two external users are called into an audio conference for one hour, the customer would use 120 minutes from the monthly pool of minutes.

Q: Can Calling Plan minutes be used in any Audio Conferencing dial-Out scenarios?

No. The ability to dial-out from a conference does not resemble a call. There is no construct of ‘from → to’ for Audio Conferencing Dial-Out as there is with a call. All that matters from the perspective of the service is the location of the participant receiving the dial-out. It is the service placing the call, not the organizer. Because it is the service placing the call out, it does not use the Calling Plan minutes of the organizer. Thus, for Audio Conferencing Dial-out specifically, Calling Plans are not relevant from a licensing standpoint. These are two separate services.

Q: What is a Zone A/Included Dial-out country and what is a Pay-as-you-go Dial-out country?

For Audio Conferencing services, there is a distinction between two types of countries. Countries that are considered Zone A/Included Dial-out will have some Dial-Out Conferencing included as part of their service plan.
Countries that are considered Pay as You Go Dial-out will not have Dial-out Conferencing included in their services plans. For these latter countries to use Dial-out conferencing services, they will need to establish a Communication Credits account (or Pay-as-you-go consumption depending on purchasing channel) and will be charged by the minute for all Dial-out conferencing usage.

Q: How do I pay for per-minute charges for audio conferencing and calling?

There are two billing and payment models depending on your purchasing channel. Both models utilize Microsoft’s per minute country rates that you can find at https://www.microsoft.com/microsoft-teams/audio-conferencing (scroll to ‘See rates for where you want to call’ section):
  1. Communication Credits: Available to commercial customers purchasing through Enterprise Agreement (EA)/Enterprise Agreement Subscription (EAS), legacy CSP, and legacy Buy Online channels; and to education customers purchasing via Enrollment for Education Solutions (EES), SCP, or Buy Online.
  2. Pay-as-you-go consumption: Available to commercial customers purchasing through CSP or Buy Online channels. Customers will be billed in arrears based on their monthly usage.
Customers must enable their Communications Credits account and will be charged per minute for their usage using a pre-paid balance (with the ability to enable auto-recharge amounts). If the customer has not enabled their Communications Credits account and they reach either their Domestic or International calling limits, their service will be suspended for the remainder of the month.

Q: What if I fail to set up Communications Credits?

Users will be unable to use the “Call-me-back” functionality or dial-out from a meeting after you hit your cap for included destination countries or be unable to complete any dial-out calls to non-included countries.

Q: What is Extended Dial-Out Minutes to USA/CAN?

Extended Dial-Out Minutes to USA/CAN is an add-on SKU that provides extended dial-out minutes to the US and Canada for paid Audio Conferencing, Audio Conferencing with dial-out to USA/CAN, or Microsoft/Office 365 E5 customers. 

Q: What is the minute limit for the Extended Dial-out Minutes to USA/CAN add-on license?

The extended dial-out excess use limit to the US and Canada is 50,000 minutes per licensed user per month. 

Q: What are the sell-to markets in which you can purchase the Extended Dial-out Minutes to USA/CAN add-on?

The Extended Dial-out Minutes to USA/CAN add-on is available to purchase in any country where Audio Conferencing is available for purchase.

Q: How are minutes consumed if a user has both Audio Conferencing and the Extended Dial-out Minutes to USA/CAN license?

The Extended Dial-out Minutes to USA/CAN will take precedence and will be consumed first before utilizing the 60 minutes of pooled dial-out Audio Conferencing minutes. 

Q: Can both meeting organizers and meeting attendees dial-out to local US and Canadian phone numbers utilizing the allocated extended dial-out minutes of the organizer?

Yes, both meeting organizers and attendees will have the ability to dial-out to local US and Canadian numbers from any meeting using the Extended Dial-Out Minutes to USA/CAN. If excess use limits of 50,000 monthly minutes are exceeded, then the licensed customer will be charged the standard per minute dial-out conferencing rate depending on country destination via their Communications Credits account. 

Q: Can you host a meeting from a country other than US or Canada and utilize the Extended Dial-out Minutes to USA/CAN for meeting attendees in the US and Canada?

Yes, the meeting organizer can be located in any geo where Audio Conferencing is available. The new Add-on will allow both organizers and participants the ability to dial-out to local US and/or Canadian phone numbers bringing additional attendees into the meeting when necessary. 

Q: What is Audio Conferencing for India-based Users?

Audio Conferencing for India-based Users is a user subscription license (USL) specifically for licensing users located in India. 

Q: When is the Audio Conferencing for India-based Users subscription license required?

User Subscription Licenses are required for multinational customers purchasing Audio Conferencing under a new or renewal enrollment with an effective date of February 1, 2020 or after, to license any of their users physically based in India. 

Q: Are there any differences in the capabilities provided with Audio Conferencing for India-based users?

No. The only difference is the price of the SKU. It provisions the exact same product license as the regular Audio Conferencing SKU.

Q: What is Operator Connect Conferencing?

Operator Connect Conferencing is a service that allows customers to add operator dial-in numbers to a Microsoft Audio Conferencing bridge while using the same administrator interface as Operator Connect.
Operator Connect Conferencing is an operator-managed service that provides the following benefits:
  • Bring your own operator for conferencing, for operators participating in the program: Customers can maintain their preferred operator contracts as they migrate existing PSTN infrastructure to the cloud.
  • Variety of operators available at your fingertips: Diversify PSTN infrastructure to include additional qualified operators.
  • Expanded geographic dial-in coverage: Additional dial-in locations available to support customer multi-national needs.
  • Enhanced support and reliability: The tight partnership with operators provides enhanced technical support and service level agreements to address reliability.

Q: Are there any prerequisites to license Operator Connect Conferencing?

You can add Operator Connect Conferencing to any Microsoft 365 or Office 365 suite that includes Teams, Teams Enterprise, Teams EEA, or Teams Essentials (Entra ID).

Q: Which Operator Connect Conferencing users need to be licensed?

Only meeting organizers are required to be licensed with Operator Connect Conferencing.

Q: What is considered Domestic Calling?

Domestic calling in the context of a meeting is based on the Microsoft 365 assigned country location of the meeting organizer. An organizer whose assigned location is in France will have Domestic calling for French numbers, and International calling for all other numbers. 

Q: If an individual user’s Calling Plan or Audio Conferencing usage exceeds the allocation limit associated with their User Subscription License, will my company be charged for additional minutes used?

Not necessarily. The minutes included in the User Subscription Licenses are pooled at the tenant level, so you will incur overage charges only applied if the combined usage across our tenant exceed the monthly pool limits. If an individual user goes beyond their user limit of 3,000 Domestic minutes, for example, but your overall tenant-pooled limit threshold wasn’t breached, then you will not be charged for any overages. 

Q: Are unused Calling Plan or Audio Conferencing minutes rolled-over to the next month?

No. Minute allocations are based on a monthly cycle. Any minutes that were unused during the month do not roll over to the next month.

Calling Plans


Q: What are Calling Plans?

Calling Plans provide domestic and international calling with Microsoft Teams using existing phone numbers or new ones.

Q: Where is the Microsoft Teams Calling service available?

You will find details on country availability of Calling Plans at https://learn.microsoft.com/MicrosoftTeams/calling-plan-overview.

Q: What is included with Calling Plans, and what is paid based on consumption?

For Calling Plans, inbound Domestic calls, outbound Domestic calls, and International calls are included with the service in accordance with our excessive use limit policy. If the customer exceeds the excessive use limits, the excess minutes will be billed on a per-minute basis.

Q: What if a Calling Plan user makes a Domestic or International call to another user in the same tenant?

Calls placed to other users whose license resides in the same Microsoft 365 tenant, domestic or international, will not count towards the excessive use limits for their Calling Plan service. When calls are placed within the same tenant, reverse number lookup functionality will validate that the call originated in the same tenant and it will be placed as a peer to peer call on the Voice Over IP network, if available. 

Q: What if I exceed my tenant's monthly Calling Plan minute allocation?

If you exceed either your Domestic or International Calling Plan minute allocation, then you will be charged per minute for usage. Thus, if a US-based tenant exhausts their pool of 3,000 domestic calling minutes of their Calling Plan, they will be charged by the minute for any domestic or international dial-out calls made in excess of the 3,000 domestic minutes, regardless of how many minutes were left in their International plan.

Q: Are all Calling Plan minutes pooled together at the tenant level?

No, minutes included in a Calling Plan are pooled by plan and geographical type.
For example, if you license 10 users with a full Domestic Calling Plan, you would have 30,000 pooled minutes for domestic calling use between those 10 users. If you exceed your pool minutes for the month, all additional domestic calls made will be charged per minute. No other plan type limits are affected.
If that same customer licensed 5 users with an International Calling Plan in the US, they would have 3,000 pooled minutes for international calling use and 15,000 minutes of domestic calling use between those 5 users. If you exceed your pool minutes for the month for either domestic or international calls, all additional domestic and international minutes used will be charged per minute.

Q: What if a Calling Plan user is in the US but travels to another country?

Whether the call is domestic or international is based on where the user license is assigned. In this case, even if travelling outside of the US, any calls to US numbers would be treated as domestic.

Teams Phone


Q: What is Teams Phone (previously Phone System)?

Teams Phone enables users to make calls to, and receive and transfer calls from phones, mobiles, tablets, and PC’s, using their underlying telephone service provider, from nearly anywhere with internet access. IT administrators can manage users for communications in the Microsoft administrator portal. Companies can take advantage of existing telephony infrastructure (i.e., traditional PBX systems or on-premises SIP trunks). With our Teams Phone, customers can eliminate separate PBX systems. 

Q: Can a customer with an assigned Calling Plan transfer calls to a separate user who does not have a Teams Phone license using Teams?

Yes, transferring a call to a user within the Active Directory group is allowed and the user receiving the transfer is not required to have a Teams Phone license.  

Q: What are the licensing requirements for users who want to utilize the delegation feature in Teams to setup a shared line appearance?

Teams Phone with Calling Plan (or other Direct Routing) is required for all shared line appearance users.

Q: What are the licensing requirements for users who want to setup a call sharing or group call pickup using Teams?

All users who intend to use call sharing or group call pickup features in Microsoft Teams will be required to have the Teams Phone license. For more details, please see https://learn.microsoft.com/microsoftteams/call-sharing-and-group-call-pickup.

Q: What are the options for licensing user with Teams Phone?

You can license a user for Teams Phone via the following User Subscription Licenses:
Enterprise:
  • Microsoft 365 E5 or Office 365 E5
  • Microsoft 365 (no Teams) or Office 365 E5 (no Teams) + Teams Enterprise
  • Microsoft 365 E5 EEA (no Teams) or Office 365 E5 EEA (no Teams) + Teams EEA
  • Office 365 E1/E3 (no Teams) or Microsoft 365 E3 (no Teams) + Teams Enterprise + Teams Phone Standard
  • Office 365 E1/E3 EEA (no Teams) or Microsoft 365 E3 EEA (no Teams) + Teams EEA + Teams Phone Standard
  • Teams Enterprise or Teams EEA + Teams Phone Standard
Frontline:
  • Microsoft 365 F1/F3 or Office 365 F3 + Teams Phone Standard for Frontline
Business:
  • Microsoft 365 Business Basic/Business Standard/Business Premium + Teams Phone Standard
  • Teams Essentials + Teams Phone Standard

Teams Premium


Q: How does Teams Premium compare to Teams?

Purchasing the Teams Premium add-on license provides admins and end users with extra features on top Teams along with their Microsoft 365 subscription. Because Teams Premium is an add-on license to Teams, users need Teams and Teams Premium licenses to access all features. Teams Premium licenses do not replace standard Teams licenses. Visit https://learn.microsoft.com/microsoftteams/teams-add-on-licensing/licensing-enhance-teams#how-does-teams-premium-compare-to-teams for details on the feature differences between Teams and Teams Premium.

Teams Rooms


Q: Are there any restrictions on what rooms/devices can be assigned the Teams Rooms licenses?

Teams Rooms licenses are applicable to certified Teams Rooms Systems that include a compute device. See certified devices at https://www.microsoft.com/microsoft-teams/across-devices/devices/category/teams-rooms/.


Q: Can Microsoft 365/Office 365 user licenses be used for licensing Teams Rooms devices?

No, Teams Rooms devices require Teams Room device licenses. User subscription licenses cannot be assigned to devices.

Q: Do these changes regarding the packaging of Teams with Microsoft 365 and Office 365 suites apply only to customers in Europe?

No. The reversal of end of sale on Enterprise suites with Teams and the price changes outlined above will apply worldwide. However, other elements of the commitments are enforceable specifically for customers with a billing address in the European Economic Area (EEA). View the official list of EEA countries.

Teams Shared Device


Q: What is a Teams Shared Device license?

The Microsoft Teams Shared Devices add-on license allows offices to designate devices as shared devices, including common area phones, Teams displays for hot-desks, and Teams panels for meeting spaces.

Q: Is the Teams Shared Device license appropriate for licensing functionality other than making and receiving voice calls?

No. The Microsoft Product Terms for Microsoft Teams defines a Common Area Communications Device as follows:
“A Common Area Communication Device (“CACD”) is a device shared by multiple users who do not log into the device with their Office 365 credentials and which supports calls, meetings and/or conferencing over voice, Voice over IP, and/or video. Microsoft’s Common Area Phone and Teams Rooms offerings are Device SLs that may only be assigned to a CACD. Each CACD Licensed Device may be accessed and used by any number of users.”
This specifically means that if the device (e.g., Polycom Trio or Surface Hub) is doing anything other than making and receiving voice calls, they will be violating the license terms.
Please note that Teams Phone requires E1/E3 to add (or included in E5), hence its inclusion in the Teams Shared Device license that is assigned to devices whose purpose is to make and receive voice calls only.

This content is for informational purposes only. MICROSOFT MAKES NO WARRANTIES, EXPRESS OR IMPLIED, ON THIS PAGE. This information is provided to help guide your authorized use of products you license; it is not your agreement. Your use of products licensed under your volume license agreement is governed by the terms and conditions of that agreement. In the case of any conflict between this information and your agreement, the terms and conditions of your agreement control.
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