In short: Teams Phone licensing works in layers. Each user needs a qualifying Microsoft 365 or Teams plan, a Teams Phone licence (Teams Phone Standard, or a bundle with a Calling Plan) and a PSTN option. Auto attendants use free Resource Account licences, shared phones use Teams Shared Space, and Microsoft 365 E5 already includes Teams Phone.
How Teams Phone licensing fits together
Most Microsoft 365 plans let colleagues call each other in Teams. To give someone a phone number and PBX features, you add Teams Phone. To let them call the outside world, you add a PSTN connection. So for a typical user you are buying:
- A base plan that includes Teams, such as Microsoft 365 Business Standard, Teams Essentials or an Enterprise suite plus Teams Enterprise.
- A Teams Phone licence: Teams Phone Standard, or the Teams Phone with Calling Plan bundle.
- A PSTN option: a Microsoft Calling Plan, a contract with an Operator Connect or Teams Phone Mobile operator, or Direct Routing through a provider such as Forever Teams.
Not every phone needs a person's licence. Auto attendants, call queues, shared phones and meeting rooms each have their own licence type, covered below. Microsoft maintains the definitive list on its Microsoft Learn page for Teams add-on licences, which we checked in October 2026.
Teams Phone licences and add-ons
| Licence | What it does | Notes |
|---|---|---|
| Teams Phone Standard | Adds PBX features: a phone number, cloud voicemail, transfer, forwarding, caller ID, auto attendants and call queues | Formerly Microsoft 365 Phone System. Needs a PSTN option for outside calls |
| Teams Phone with Calling Plan | A bundle of Teams Phone Standard and a Microsoft Calling Plan | Microsoft is your carrier. Domestic and international versions |
| Microsoft Teams Calling Plans | Microsoft-provided calling, added to Teams Phone Standard | Domestic, International and Pay-As-You-Go. See Teams Calling Plans |
| Communication Credits | A pre-paid pool that pays for calls beyond, or outside, plan minutes | Also funds toll-free numbers and Pay-As-You-Go plans |
| Teams Phone Resource Account | Licenses the resource account behind each auto attendant or call queue | Microsoft states there is no longer any cost for it. Never assign it to a person |
| Teams Phone Standard for Frontline Workers | Teams Phone for staff on Microsoft 365 or Office 365 Frontline plans | Only for users who meet Microsoft's frontline criteria |
| Teams Phone Mobile | Uses the business number on a user's mobile SIM as their Teams number | Needs Teams Phone plus a participating mobile operator |
| Audio Conferencing | Dial-in and dial-out numbers for Teams meetings | Does not need Teams Phone. Included in E5 |
| Microsoft Teams Shared Space | Licenses common area phones, Teams panels and desk docks | Named Microsoft Teams Shared Devices before April 2026. Includes Teams Phone |
| Teams Rooms Basic and Teams Rooms Pro | Licenses meeting room systems | Basic is free for up to 25 rooms. Pro includes Teams Phone Standard. See Microsoft Teams Rooms |
| Teams Premium | Adds advanced meeting, management and reporting features | Needed, with Teams Phone, for every user of Microsoft's Queues app |
Which Microsoft 365 suites qualify
Microsoft lists the plans that can take Teams Phone. In summary:
| Plan family | Plans that can add Teams Phone | Notes |
|---|---|---|
| Business (up to 300 users) | Teams Essentials (with Microsoft Entra ID), Microsoft 365 Business Basic, Business Standard and Business Premium | Business suites are sold with and without Teams; you need a version with Teams |
| Enterprise | Microsoft 365 E3 or Office 365 E1/E3 (no Teams) plus Teams Enterprise, or Teams Enterprise on its own | Older suites that include Teams can still be renewed by existing customers |
| Enterprise E5 | Microsoft 365 E5 and Office 365 E5 (no Teams) plus Teams Enterprise | Teams Phone and Audio Conferencing are included; add a PSTN option |
| Frontline | Microsoft 365 F1 and F3, Office 365 F3 | Use Teams Phone Standard for Frontline Workers |
| Education | Office 365 A1 and Microsoft 365 A3; A5 includes Teams Phone | Education pricing exists: ask us for a quote |
The 2024 change for Enterprise customers. From 1 April 2024, new Enterprise customers who want Teams buy two products: an E1, E3 or E5 suite without Teams, and Teams Enterprise. Microsoft 365 Business suites and Frontline suites are available both with and without Teams. Our Microsoft licensing team can review your current suites before you add Teams Phone.
Licences for auto attendants, shared phones and rooms
These are the licences people most often get wrong:
- Auto attendants and call queues each need a resource account with a Teams Phone Resource Account licence, whether or not it has a phone number. Microsoft says not to assign Teams Phone Standard to a resource account.
- Outbound calls from resource accounts. Microsoft states that since 1 November 2025, Calling Plan licences on resource accounts are no longer supported for on-behalf-of outbound calls, external transfers or callbacks using Calling Plan numbers. A funded Pay-As-You-Go Calling Plan or Communication Credits is needed instead. Operator Connect users should check with their operator; Microsoft says there is no change for Direct Routing numbers.
- Common area phones, Teams panels and desk docks use Microsoft Teams Shared Space, which includes Teams Phone and cloud voicemail. Add a PSTN option for outside calls. Microsoft notes that with Direct Routing a common area phone does not need a Calling Plan.
- Meeting rooms use Teams Rooms Basic or Teams Rooms Pro, not Shared Space or a user licence.
- Teams Phone Agent, Microsoft's AI auto attendant, needs Teams Phone, a resource account and Copilot credits.
Microsoft changes licence names and rules regularly, so we check the current Microsoft guidance for every quote.
Choosing the right mix
A sensible licence plan usually looks like this:
- Office staff on Teams Phone Standard plus the PSTN option that suits you, or the Teams Phone with Calling Plan bundle
- Low-calling users on a Pay-As-You-Go Calling Plan rather than a minutes plan
- Frontline staff on the Frontline version where they qualify
- Resource Account licences for every auto attendant and call queue, with Pay-As-You-Go or Communication Credits if they make outbound calls
- Shared Space for kitchen, warehouse and reception phones; Teams Rooms for meeting rooms
- Audio Conferencing only for people who host dial-in meetings, unless E5 already covers it
Comparing the per-user model with alternatives? 3CX pricing works on an annual licence per system instead, and our guide to cloud phone system cost explains what drives the total.
How we help with Teams Phone licences
We supply Microsoft licences alongside the calling service, so you are not juggling separate suppliers. We will:
- Audit your current Microsoft 365 suites and Teams licences.
- Recommend the Teams Phone, PSTN and shared-device licences you actually need.
- Apply education or non-profit pricing where your organisation qualifies.
- Assign licences, set up resource accounts and test auto attendants and queues.
- Review the mix as staff numbers change, so you are not paying for unused licences.
Every price depends on your plan family, term and numbers, so ask us for a quote. Contact us and we will send a licence plan with no obligation.
Why choose your cloud phone system with Forever Systems
We are vendor-neutral. Forever Group supplies and supports several cloud phone platforms, so we recommend the one that fits how your organisation works rather than the one we happen to sell.
- Side-by-side comparison of hosted 3CX, Microsoft Teams Phone, Forever UC, Forever Teams and Webex Calling for your users
- Contact centre and call recording options matched to your call volumes and CRM
- Number porting, handsets and set-up handled for you, including the move off analogue and ISDN lines
- Connectivity checked so call quality is right from day one
- UK support for moves, adds, changes and faults
- For BT Cloud Voice, see our BT Business Partner site cloudvoice.cloud
We work with businesses, schools, charities and public sector organisations. We do not sell consumer phone services.
Want a vendor-neutral cloud phone system comparison and quote?
Tell Forever Systems what you need and we will come back to you by email with options, not a hard sell.
Contact usFrequently asked questions
Do I need a separate licence for Teams Phone?
Yes, unless you have Microsoft 365 E5 or Office 365 E5, which include Teams Phone. Other plans need a Teams Phone Standard licence or the Teams Phone with Calling Plan bundle, plus a PSTN option for calls to ordinary phone numbers.
Can Microsoft 365 Business Basic use Teams Phone?
Yes. Microsoft lists Microsoft 365 Business Basic, Business Standard and Business Premium, and Teams Essentials with Microsoft Entra ID, as plans that can add Teams Phone, provided the plan includes Teams.
Do auto attendants need a licence in Teams?
Yes. Each auto attendant or call queue that answers calls needs a resource account with a Teams Phone Resource Account licence, which Microsoft now lists at no cost. If it makes outbound calls using Calling Plan numbers, Microsoft requires a funded Pay-As-You-Go Calling Plan or Communication Credits.
What licence does a Teams common area phone need?
A common area phone uses a Microsoft Teams Shared Space licence, which was called Microsoft Teams Shared Devices before April 2026. It includes Teams Phone, and you add a PSTN option for outside calls.
Is there education or charity pricing for Teams Phone?
Microsoft offers education and non-profit versions of many Teams and Teams Phone licences. Eligibility rules apply, so ask us for a quote and we will check what your organisation qualifies for.