Teams Phone licensing in 2024

Teams Phone Licensing in 2024

Welcome to the dynamic world of Microsoft Teams, where communication and collaboration converge seamlessly. As Teams continues to evolve, especially in its calling capabilities through Direct Routing, understanding the Teams Phone licensing landscape in 2024 is crucial for MSPs.

This blog will dive into the license combinations necessary for leveraging Teams Calling with Direct Routing, ensuring you and your customers can make informed decisions.

Understanding Direct Routing in Microsoft Teams

Direct Routing allows Teams users to connect to external phone lines and use Teams as a complete phone system. It’s particularly advantageous for organisations seeking customisation and control over their calling capabilities.

If you want to learn more about Teams Phone also known as Teams Calling, then check our playbook to discover:

  • What Teams Phone can and can’t do
  • How to configure the Microsoft Environment
  • How Teams Phone integrates with other platforms
  • How your MSP can drive bottom-line results with Teams Phone
Scope, design, provision and support Teams Phone with Confidence.

Get the free eBook that walks you through all of Teams Phone without the sales pitch. No forms, no spam, no cold calls. The Teams Phone Playbook is 100% free.

Microsoft Teams Phone Licensing Overview

Microsoft’s licensing for Teams is multifaceted, combining various licenses to unlock different features. In 2024, this remains true for Teams Phone with Direct Routing. 

Teams Phone with Direct Routing: Licensing Combinations

Budget-Friendly Combination

Microsoft 365 Business Basic, Standard and Premium License: Offers essential Teams functionalities for smaller businesses. 

Teams Phone Standard is the add on that gives each user PSTN calling access, voicemail, call park, call forwarding, auto attendant, call queues, call transfer, caller ID etc.  

This was formally called Microsoft 365 Business Voice (without calling plan).

This combination is an economical choice for small to medium-sized businesses that need Direct Routing but are mindful of budget constraints. 

Check out Microsoft Learn for more details on Microsoft 365 Business Voice and Microsoft Teams add-on licensing 

Basic Combination

Office 365 E1 or E3 License: Provides the core Teams functionalities. 

Teams Phone Standard Add-on: Essential for enabling call control and PBX capabilities in Teams, allowing Direct Routing integration. 

Advanced Combination

Office 365 E5 License: Includes all features of E1/E3 and additional security and compliance tools. The Phone System license is included in E5, which eliminates the need for an add-on, offering a comprehensive solution. 

Teams Phone Licensing for Common Areas

Understanding Common Area Phones

Common Area Phones are typically used in shared spaces in a business, like lobbies, break rooms, or hallways. These phones are an essential part of an organisation’s communication network, and shouldn’t be overlooked when integrated with Microsoft Teams. 

Microsoft 365 Phone System License for Common Area Phones

This is a specialised license designed explicitly for common area phones which provides the core calling capabilities within Teams, allowing these devices to make, receive, and transfer calls just like any other Teams-enabled user or device. 

Shared Calling?

Inspire 2023 saw the unveiling of shared calling for Microsoft Teams. Ideal for those with users might not need a dedicated number.  Check out more on this feature on Microsoft Learn.


Microsoft Teams Direct Routing opens up a world of possibilities for unified communications.  

By understanding and choosing the right licensing combination in 2024, you and your customers can harness the full potential of Teams Phone.  

If you need a hand planning or pricing up a migration to Teams Phone, feel free to call your Channel Account Manager or email ( 

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