Microsoft Teams Phone System Pricing for Large Companies in 2025

You’re a medium to large-size company (hundreds to thousands of employees), and your company in the market for a new phone system. You’re considering Teams Phone System, but you’re wondering how much it costs and is the pricing different for a large company than a small company?

In this video, I cover Teams Phone System pricing for large companies.

Want my recommendations on the best Teams Phone Operator Connect Vendor? Ask me today.

About Me

Mike Smith has been helping companies select the best telecom, WAN, security, and cloud services since 1999. He founded AeroCom in 2003, and has been the recipient of numerous business telecommunications industry awards, including being recognized as one of the top 40 business people in tech-heavy Orange County, CA. Follow Mike on YouTube, LinkedIn, Reddit and SpiceWorks.

Transcript

You work for a medium to large size company like hundreds or thousands of employees, and you’re in the market for a new phone system. And Microsoft teams phone system is one of the options that you’re considering. But you’re wondering how much does it cost? Is it the same price for a small company as it is for a large company like yours? My name is Mike Smith. I’m the president of Arrow. Come, let’s put our heads together on this

My recommendations

if you’d like my recommendation on the best teams phone operator, connect vendors that your company should be quoting. Reach out, send me an email or give me a call (714.593.0011). I will help you make a lot better decision in a fraction of the time, and it won’t cost you anything to get my recommendations. So more information on that at the end of the video. Also, don’t forget to leave a comment down below and subscribe to my channel if you’d like to make sure you don’t miss any of my weekly videos that I put out. And if you’d like to video hit the like button too, that would really help.

You’re in the market for a new phone system

How much does Microsoft Teams phone system cost? For a medium to large size company with hundreds or thousands of employees, what is the pricing? As I said in the beginning of the video, the question being, is it different for small companies than it is for large companies? Yes, the pricing is going to be different for a large company as opposed to a small company, especially if you are buying correctly and by buying correctly.

Use an Operator Connect

The first piece of advice I would have for you is if you are a medium to large size company, you need to be using the write operator connect better. You don’t want to be buying directly from Microsoft. You don’t want to be using direct routing and using SIP trunks. You want to be using operator connect and you want to use the right vendor There is about 100 vendors out there that do operator connect, and if you use the wrong one, you won’t get the best pricing If you use the right one, you will get the best pricing and the best service. Again, if you’d like my recommendations on that, send me an email. Give me a call. Look at the end of the video for more information on that. It won’t cost you anything. It’s the best way to go. So yes, use the operator, connect vendor

Teams Phone Standard Plan

Okay. There are two pricing components to Microsoft teams phone system. If you’ve seen any of my Microsoft teams phone system videos, you’ll know that. But just to review it again, the first pricing component is your licensing add on cost. So in order for teams phone system to work, everyone, every user has to have the teams phone standard add on for Microsoft teams that add on cost $8 per month per user, roughly speaking, and it is actually included if your company has an E5 office 365 or Microsoft 365 license, all the other licensing, you have to pay for it. It’s the add on. It’s $8 per month per user. E5 is the only license level where that is included. So that’s the first part of the pricing.

Calling Plan

The second part of the pricing is called a calling plan. So for a calling plan, you are going to be looking at anywhere between $2 per month per user to $12 per month per user. well, that’s a big range, right? So you guys are all medium to large size businesses. Well, there’s a big range within that medium to large sized businesses. Okay. So if you have maybe like a couple hundred, a few hundred employees, two or 300 employees expect to pay maybe like 5 to $8 per month per user for the calling plan. If your company has thousands of phone system users, you can expect to pay maybe something like $2 to $4 per month per user. So where does that other range come in where I said maybe up to like $12 per month per user? Well, that’s if you are using the wrong operator, connect vendor and they’re overcharging you because, because you really if you’re using the right vendors, you really shouldn’t be paying more than $8 per month per user if you are at least a medium sized company with a few hundred employees.

Simultaneous Call Path vs Flat Fee

Now let’s go back to the thousands of users scenario where you’re paying $2 to $4 per month per user. How does that happen? Well, typically the operator connects. Service provider isn’t charging you necessarily $2 per month per user flat fee. Sometimes they might be maybe charging you 3 to $4 per month per user, and then they’ll give you like a bundle of a couple of hundred minutes per month per user of outbound calling. With that or some vendors out there might only charge you for simultaneous call pads, meaning that they will ask you at your busiest time of the day across all locations globally, how many people are going to be on the phone at the exact same time? And based on that number, maybe they’ll charge you like $20 per month, per simultaneous call path and then they’ll maybe charge you like $1 per month, per user per phone number that you need out there. So when you average out that pricing, that’s how you can get the pricing really low. If you have a lot of users like thousands of users, but not that many simultaneous calls taking place, your pricing can get really low. So that would be what I’d call unbundled call path pricing or call path based pricing. Another way vendors can get your pricing really low is charging you metered pricing versus flat rate or unlimited calling pricing. So metered means that your company is going to pay for calling outbound calling on a permanent basis as opposed to having unlimited outbound calling included.

Make sure it’s the right fit

 So there’s some different ways that operator connect vendors can structure the pricing. But the main thing is, is you want to be using an operator connect vendor that has pricing, has calling plan pricing really tailored toward medium to large size companies. If you’re using the wrong operator connect vendor, they’re going to charge you what they would a small size company and try to make it fit, try to make that square peg fit into a round hole, try to make that fit for a medium to large size company and you’re going to get drastically overcharged.

Add-Ons

Okay. So in addition to your calling plan charges and your licensing add on charges, remember that teams phone standard, the only additional fees that you’re going to be paying for on a monthly basis is if your company wants to add some additional special features, like if you want to add SMS texting for some users or if you want to add compliance based call recording for some of your users, or if you want to add an operator console or if you want to add call center or analytics or things like that. So that’s the only time you’re going to pay. In addition to that, in terms of additions on top of those two pricing components I mentioned, but that all depends on the company, obviously what you guys need and so forth.

Total Costs

So overall, I would expect you should pay anywhere between, you know, $2 per month per user. That’s if your company has an five and all you’re getting is a calling plan and you have thousands of users and you’re getting a really good operator connect vendor, you might pay as low as $2 per month per user. And on the high end, if you have some extra features, things like that, if you have to pay for teams phone standard, if you don’t have any five license, maybe you’re going to end up paying something closer to around $15 per month per user total. So that’s total cost. Think in terms of anywhere between $2 to $15 per month per phone system user for your company. So that’s how much teams phone system costs for a medium to large size company.

Still Confused? Reach out and contact me

Again, if you’d like my recommendation on the best operator connect vendors, your companies should be quoting for. Reach out, send me an email or give me a call (714.593.0011). I love to help you. It’s why I do these videos. I’m a broker for all the major operator connect vendors out there, and within a few minutes I can ask you some questions, find out what your company’s phone requirements are, and I can give you the recommendations of maybe the 2 to 3 top vendors you should be quoting. I’ll introduce you to those vendors or introduce you to the best salespeople to work with that those vendors. I will oversee the coding process to make sure you get the best pricing. I’ll set you up with demos to make sure you get a demo and all the good, all the vendors and and teams phone operator connect and you can hear all about how they work. And on top of all that, guess what I won’t charge your company a dime for my services. The service providers actually pay me my broker fee, so I don’t charge you anything. So there’s no excuse not to at least reach out and get my opinion on this stuff. I’ve been doing it for over 20 years in this industry, so I know all the vendors out there. I know their sweet spots, I know the landscape of who you definitely want to use, who’s got a bad reputation, all that good stuff. So no excuse not to at least reach out and see what I have to say. All right. Well, don’t forget to subscribe to the channel so you don’t miss any of my future weekly videos that I put out.