In this article, we’ll take a closer look at the Microsoft Teams Phone system cost, evaluate its various plans on offer, and compare them head-to-head to other industry-leading VoIP solutions. Continue reading to find out more!
Key Takeaway:
Microsoft Teams Pricing starts at Phone starts at just $4 per user/month, but that doesn’t include phone. Phone add-ons start at $10 per user/month, qhich is a low price in the business calling world. However, this Microsoft teams phone price doesn’t include features that larger businesses may need.
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Microsoft Teams Phone System Pricing & Plans Overview
How much does Microsoft Teams phone cost?
Microsoft Teams Phone starts at $10/user/month and goes up from there.
Base Teams Phone Plans (per user, billed annually):
- Teams Phone Standard: $10 /user/month – includes cloud phone system features (voicemail, call transfer, PBX) but no included calling minutes.
- Teams Phone with Pay-As-You-Go Calling: $13 /user/month – includes metered outbound calling; you only pay for what you use.
- Teams Phone with Calling Plan: $17 /user/month – includes a phone number and a bundle of outbound minutes (e.g., 3,000 domestic minutes in the US, UK, and Canada).
- Teams Phone with Domestic & International Calling: $34 /user/month – adds international outbound minutes along with domestic minutes.
Extra Costs to Budget For:
- Microsoft Teams or Microsoft 365 subscription: Teams Phone is an add-on; you must already have Teams or Microsoft 365 for each user.
- Calling plans or communication credits: Needed if you want to make/receive calls to regular phone numbers (PSTN).
- Depending on your region and provider model, pricing and packages can vary.
Microsoft Teams offers multiple calling plans, with the only difference between them being the specific pricing structure. Below, you’ll find a quick overview of the different Teams VoIP pricing options, along with all their included minutes and features.
Feature/Aspect
Standard
Pay-as-You-Go
Calling
Domestic & International
Purchased additionally
Metered calling
3,000 domestic outbound
3,000 domestic / 600 international outbound
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Microsoft Teams Phone Pricing – Standard
Starting at just $10 per user/month, this is the cheapest Teams Phone pricing option available. Standard does not include any calling minutes, but can be combined with a compatible providers’ phone plan to leverage your personal / company SIM number.
The benefit of this is that you can effectively leverage VoIP calls and all of Microsoft Teams’ features, without juggling multiple phone numbers at the same time. However, Standard does require an additional Microsoft Teams subscription to work.
Before we go on—CloudTalk has a native integration for Microsoft Teams, but if you’re choosing between the two, check out our comparison video below.
Teams Phone with Pay-as-You-Go Calling
(Country Zone 1 – US)
Starting at $13 per user/month, this Microsoft Teams Phone system pricing is perfect for companies that don’t want to over-spend on minute-package plans they wont use. It offers metered outbound calling, meaning you only pay for the subscription and minutes.
However, on Microsoft’s page, this plan is only available in its “Country Zone 1”, which includes the United States, Canada, United Kingdom, and Puerto Rico. It requires an additional, stand-alone Microsoft Teams subscription to work.
Teams Phone with Calling Plan
(Country Zone 1 – US)
Starting at $17 per user/month, the Teams Phone with Calling Plan pricing is ideal for local businesses that spend a similar amount of time calling each month and want to save via a package deal. This plan comes with 3,000 outbound domestic minutes.
Like the PAYG plan, this subscription is also only available in Country Zone 1 (US & Puerto Rico, UK & Canada), and requires an additional, stand-alone Microsoft Teams subscription to work.
Teams Phone with Domestic & International Calling
(Country Zone 1 – US)
Starting at $34 per user/month, the Teams International Calling subscription works best for international companies with stable monthly minute spends. It offers a combined pool of 3,000 domestic and 600 international outbound minutes with a 1:5 conversion rate.
In practice, this means that each minute you call internationally will subtract 5 minutes from your domestic calling allowance. This plan is also only available in Country Zone 1 and requires an additional, stand-alone Microsoft Teams subscription to work.
Microsoft Teams Voice Licensing Hidden Costs:
While the Teams Voice licence cost may seem more than favourable, as we previously mentioned, each plan required and additional Microsoft Teams subscription for onboarded agent to work. These also come in multiple packages, including:
- MS Teams Essentials: $4 per user/month, annually for access to MS Teams.
- MS Teams Premium: $10 per user/month, annually with AI-powered features.
This means that although Microsoft Teams VoIP pricing seems quite cheap, your annual subscription costs can quickly rise, if you intend on onboarding multiple users and agents to handle your call center operations.
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CloudTalk Vs. Microsoft Teams Phone: Which Is Better?
Whenever you’re considering a particular provider, it’s important to consider their offering in the context of other options on the market. In this case, we’ll be comparing the provider directly against CloudTalk, so it’s vital we give you some context.
Short Overview of CloudTalk’s Plans and Pricing
CloudTalk has 5 pricing plans on offer, ranging in price from $19 to $49 per user/month, with a special exception for the custom pricing plan, which lets you tailor your solution to your unique business needs. Here’s a breakdown of CloudTalk’s plans:
- Lite: CloudTalk’s special entry-level plan for micro and small businesses in the US and LATAM. Uniquely quick to deploy, with all the basic calling and call center management tools you need to enter the global market.
Key Features: Unlimited calling in US & Canada, Business SMS, Click-to-Call, Call Recording, Analytics - Starter: CloudTalk’s basic plan is designed specifically for micro and small businesses. Easy to set up and easier to use, this plan offers small teams everything they need to kick off their call center operations.
Key Features: Click-to-Call, Voicemail, Call Flow Designer (CFD), Automatic Call Distribution (ACD)
Price: $25 per user/month - Essential: CloudTalk’s medium plan, focused on growing SMBs and MMBs. This plan helps teams expand their inbound and outbound operations, automate processes, and improve experiences.
Key Features: SMS/MMS, Interactive Voice Response (IVR), Skill-Based Routing, Callback, Integrations + Open API
Price: $29 per user/month - Expert: CloudTalk’s feature-packed plan for growing MMBs and enterprises or any team that requires robust calling capabilities. This plan helps customer-facing departments streamline outreach and improve performance.
Key Features: Power Dialer, Smart Dialer, VIP Queues, WhatsApp Inbound & Outbound Messages, Call Monitoring
Price: $49 per user/month - Custom: CloudTalk’s ultimate plan for the most demanding of companies, tailored perfectly to their particular business needs. This plan allows you to do it all, from coordinating teams to conquering the world’s many markets.
Key Features: Custom Onboarding, Unlimited Outbound Calls with Flat Rates, Enterprise-Level Security, Developer Support
Price: Varies based on features, number of users, etc.
CloudTalk Vs. Microsoft Teams Phone Pricing: Direct Comparison
Feature/Aspect
CloudTalk
MS Teams Phone
Call Recording
Available from Starter
($25 per user/month)
Available in all plans
CloudTalk Vs. Microsoft Teams Phone: Key Takeaways
We can glean several insights based on our comparison between CloudTalk’s and Microsoft Teams Phone’s pricing and plans. These include:
- Pricing: While MS Teams Phone starts at $10 per user/month, its hidden costs and lack of included features make CloudTalk’s $25 plans far more favorable.
- Features: CloudTalk offers numerous advanced features missing from the MS Teams Phone, which can be severely limiting and costly in missed opportunities.
- Integrations: Unlike MS Teams Phone, which lacks native integrations, CloudTalk integrates seamlessly with over 35 CRMs and business tools.
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Microsoft Teams Phone Best Features
While MS Teams Voice offers only a limited number of features, a few rise above the rest. Based on external reviews, Microsoft Teams Phone’s top 3 features include:
- Operator Connect: Allows direct connection to a telecom provider without additional hardware, ensuring flexibility and reliability.
- Call Queues: Efficiently manages inbound calls by placing them in organized queues, ensuring no call goes unanswered.
- Direct Routing: Enables businesses to connect to PSTN using their preferred telecom provider, offering cost control and flexibility.
Microsoft Teams Phone Pros & Cons
Based on everything discussed so far, we can make several conclusions regarding MS Teams Phone’s strongest and weakest aspects. These include:
What are the disadvantages of the Microsoft Teams Phone system?
While Microsoft Teams Phone works well for internal communication, it has several limitations when used as a full business phone system.
One of the main drawbacks is complex pricing. Teams Phone is an add-on that requires a separate Microsoft Teams or Microsoft 365 license, plus additional costs for calling plans, phone numbers, or third-party carriers. This can make the total cost higher and harder to predict.
Another disadvantage is setup and administration complexity. Configuring calling plans, phone numbers, emergency addresses, and routing often requires IT involvement, especially for international teams or advanced call flows.
Teams Phone also has limited native call center features. Advanced capabilities such as power or parallel dialing, detailed call analytics, call monitoring, and sales-focused automation are either basic or require third-party integrations.
Call quality and reliability can vary depending on network conditions and region, particularly for international or high-volume outbound calling.
Finally, Teams Phone is not purpose-built for sales or support teams. It is designed primarily for collaboration, which means workflows like outbound calling, call coaching, and performance tracking are less streamlined compared to dedicated business phone systems.
How do you buy a Microsoft Teams phone number?
To buy a phone number for Microsoft Teams Phone, you need a Teams Phone license and a PSTN calling setup. Phone numbers are not included by default and must be purchased or connected separately.
1. Set up Microsoft Teams Phone
Make sure your organization has an active Microsoft Teams Phone license and a PSTN connection method in place. This can be Microsoft Calling Plans, Operator Connect, Teams Phone Mobile, or Direct Routing.
2. Choose how to get your phone number
You can purchase new phone numbers directly from Microsoft if Calling Plans are available in your region. Alternatively, you can get numbers through a certified Operator Connect or Teams Phone Mobile provider. If you already have business phone numbers, you can port them into Microsoft Teams instead of buying new ones.
3. Request phone numbers in the Teams admin center
Go to the Teams admin center and navigate to Voice settings. Select the country, number type, and quantity, then submit the request. In some regions, number availability or regulations may require a manual request.
4. Assign the phone numbers to users
Once the numbers are provisioned, assign them to licensed users or resource accounts in the Teams admin center. In certain countries, emergency address configuration is required before numbers can be activated.
CloudTalk: The Better Solution for International Teams
While Microsoft Teams Phone offers a low entry price and seamless integration with Microsoft 365, its limitations in features, hidden costs, and lack of international scalability can hinder its appeal for growing businesses.
But why fight when you can make friends? You can enjoy both the benefits of Microsoft’s collaboration system while delivering crystal-clear calls across 160+ countries. All you need to do is install the CloudTalk x MS Teams one-click integration.
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