Teams Phone Price Update

Microsoft is also updating the pricing for Microsoft Teams Phone, effective April 1, 2025. This update reflects the continuous innovations and added value provided by Teams Phone since its launch. Here are the details:

Updated Pricing

• Teams Phone Standard: $10 per user per month ($120 per user per year).
• Teams Phone Standard for Frontline Workers: $5 per user per month ($60 per user per year).
• Teams Phone with Pay-As-You-Go Calling:
  • For users in the UK and Canada: $12 per user per month ($144 per user per year).
  • For users in the US and other service markets: $13 per user per month ($156 per user per year).
• Teams Phone with Calling Plan:
  • For customers in the US, UK, and Canada: $17 per user per month ($204 per user per year).
  • For customers outside the US, UK, and Canada: $22 per user per month ($264 per user per year).
• Teams Phone with Domestic and International Calling: $34 per user per month ($408 per user per year).

Rationale Behind the Price Update

• Reflecting Value: This price update marks the first increase since Teams Phone launched in 2017. It reflects the increased value delivered to customers, including AI-powered features, advanced call management capabilities, and improved reliability.
• Continuous Enhancements: Teams Phone has continuously evolved to enable flexible, smart, and reliable calling within Microsoft Teams, making it a trusted solution for over 20 million PSTN-enabled users.

Impact on Customers

• Existing Customers: Current customers will continue to pay their existing rates until their next renewal. At that point, they will transition to the new pricing structure.
• New Customers: New customers purchasing Teams Phone licenses after April 1, 2025, will be subject to the updated pricing immediately.
• Government, EDU, and Non-Profit Customers: These segments are currently not impacted by the pricing update.

These updates are part of Microsoft’s ongoing efforts to align pricing with the value provided by its products and services, ensuring that customers continue to receive high-quality, innovative solutions.

As a Microsoft CSP Direct Provider, Spyglass MTG can assist with license recommendation and sales. If you are looking to switch from an existing CSP or retail direct from Microsoft to save some money, we can also go over options for transferring your existing subscriptions.

We are here to help, and if you have any questions, please contact me at ktillier@spyglassmtg.com.