Teams Phone Standard Licence: What It Costs and What You Get

If you want to make external phone calls from Microsoft Teams, you need more than a standard Microsoft 365 subscription. The Teams Phone Standard licence (formerly known as Phone System) is the add-on that unlocks PSTN calling, voicemail, auto attendants, and call queues inside Teams. Without it, Teams only handles internal calls and video meetings.

This article explains what the licence includes, how much it costs, and how it fits into your broader telephony strategy.

What Is the Teams Phone Standard Licence?

The Teams Phone Standard licence is a Microsoft add-on that provides cloud-based PBX capabilities within Microsoft Teams. It enables users to:

• Make and receive calls to external landlines and mobiles (when paired with a PSTN connection)
• Use cloud voicemail with transcription
• Transfer, hold, park, and merge calls
• Access auto attendants and call queues
• Use call delegation and boss-admin scenarios
• Enable call forwarding rules and simultaneous ring

The licence provides the telephony engine. To actually connect to the phone network, you also need one of three PSTN options: Microsoft Calling Plans, Operator Connect, or Direct Routing.

What Does the Licence Cost?

Microsoft prices the Teams Phone Standard licence as follows (UK pricing, correct as of early 2026):

• Standalone add-on: Approximately £6.60 per user per month, added to any Microsoft 365 or Office 365 plan that includes Teams.
• Included in Microsoft 365 E5: The E5 plan bundles Teams Phone Standard at no extra cost, alongside advanced security and compliance features.
• Included in Microsoft 365 Business Voice: Some legacy Business Voice plans include Teams Phone Standard plus a domestic calling bundle.

If you are on an E3, Business Basic, Business Standard, or Business Premium plan, you will need to purchase the add-on separately.

Teams Phone Standard vs Teams Phone

Microsoft has renamed and restructured its telephony licences several times. Here is the current picture:

• Teams Phone Standard — The main licence that provides cloud PBX features. This is what most businesses need.
• Teams Phone Resource Account — A free licence assigned to auto attendants and call queues (not to people).
• Teams Phone Mobile — A licence that integrates a user's mobile (SIM) number as their Teams calling number. Requires a supported mobile operator.

For the vast majority of UK businesses, Teams Phone Standard is the correct licence.

What Features Does the Licence Unlock?

Once the licence is assigned, each user gains access to a rich set of enterprise telephony features:

Core calling features:

• Inbound and outbound PSTN calls (with a connected carrier)
• Caller ID display and customisation
• Call hold, transfer (blind and consultative), and call park
• Music on hold
• Multi-party calling and call merge

Voicemail:

• Cloud-hosted voicemail with transcription
• Voicemail delivered to Outlook and Teams
• Custom voicemail greetings (including out-of-office)

Call management:

• Auto attendants (interactive voice menus for routing callers)
• Call queues (distribute incoming calls across a team)
• Call forwarding to mobiles, voicemail, or other users
• Simultaneous ring on multiple devices
• Boss-admin call delegation

Advanced features:

• Call analytics and quality dashboards in the Teams admin centre
• Emergency calling (dynamic location routing for E999/112)
• Compliance recording integration (with third-party recording platforms)
• Media bypass for Direct Routing (reduces latency by sending media directly between the SBC and the Teams client)

How the Licence Fits Into Your Telephony Stack

The Teams Phone Standard licence is just one piece of the puzzle. A complete Teams telephony deployment includes:

1. Microsoft 365 base plan — Provides Teams, Exchange, and the core productivity suite.
2. Teams Phone Standard licence — Unlocks PBX and calling features.
3. PSTN connectivity — Calling Plans, Operator Connect, or Direct Routing to reach the phone network.
4. Hardware (optional) — Certified desk phones, headsets, or conference room devices.

The total per-user cost depends on which base plan and PSTN option you choose. A typical mid-market setup using Direct Routing might look like this:

• Microsoft 365 Business Standard: ~£10 per user/month
• Teams Phone Standard add-on: ~£6.60 per user/month
• SIP trunk (via provider): ~£3–£5 per user/month
• Total: ~£20–£22 per user/month for full telephony and productivity

Do You Need the Licence for Every User?

Only users who need to make or receive external PSTN calls require the Teams Phone Standard licence. Users who only use Teams for internal calls and video meetings do not need it. This means you can save costs by licensing only front-line staff, receptionists, sales teams, and managers while leaving back-office staff on standard Teams licences.

Auto attendants and call queues use free resource account licences, so you will not pay extra for those.

How to Assign the Licence

Licences are assigned in the Microsoft 365 admin centre:

1. Navigate to Users > Active users.
2. Select the user and click Licences and apps.
3. Enable Microsoft Teams Phone Standard under the relevant subscription.
4. Save changes. The licence typically activates within minutes.

For bulk assignments, use PowerShell or group-based licensing in Azure AD.

Common Questions

Can I trial the licence before buying?
Microsoft offers a 25-user trial of Teams Phone Standard for 30 days. You can enable it in the Microsoft 365 admin centre under Billing > Purchase services.

Does the licence include call minutes?
No. The Teams Phone Standard licence only provides PBX features. Call minutes come from your PSTN provider (Calling Plans, Operator Connect, or Direct Routing SIP trunks).

Is the licence the same in all countries?
The feature set is identical worldwide, but pricing varies by region. UK pricing is listed above.

For more on enterprise telephony with Teams, read our guide to enterprise VoIP and UCaaS solutions. If you are evaluating Microsoft 365 plans more broadly, our article on Microsoft 365 for business covers all the licence tiers.