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What is the Microsoft “Phone System” License

In order for Teams to dial or receive calls from cell phones and land lines, Microsoft requires each user to have the Microsoft “Phone System” License.  If the user has an E5 license, they already have the “Phone System” license.  If you have the E1 or E3 license you must purchase the Add-On Phone System license.  If you do not have an E1, E3 or E5 license you must upgrade to one of those licenses before the “Phone System” add-on license is available.

If you see a DialPad in your Teams “Calls” tab, then you already have the “Phone System” license.

YOU NEED THE “PHONE SYSTEM” LICENSE BUT YOU DO NOT NEED THE MICROSOFT CALLING PLAN.  VOICE ELEMENTS REPLACES THE NEED FOR THE MICROSOFT CALLING PLAN.

Phone System is a hosted telephone service that gives you call control and Private Branch Exchange (PBX) capabilities, with options for connecting to the Public Switched Telephone Network (PSTN). Phone System features include cloud voicemail, caller ID, call park, call forwarding, auto attendants, call queues, call transfer, caller ID, and more.
To learn more, see Here’s what you get with Phone System. For pricing info, see Pricing for Phone System.

Useful Resources for Further Reading

Compare Office 365 Enterprise Plans

Microsoft Teams Add-On Licensing

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