Microsoft Teams Phone System Pricing for Large Companies in 2025-Updated!

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

In this video, I cover Microsoft Teams Phone System pricing for large companies in 2025.

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 in the city department for a medium to large sized company, meaning hundreds or thousands of employees, and it’s time to look for a new phone system. And teams phone system is one of the options that you’re considering. But you want to know how much does it cost? Well, this is a big video. There’s been an update on Microsoft teams phone system pricing since my last video that I put out a month or two ago. So I wanted to make a new video on Microsoft. Microsoft teams phone system pricing with the most updated pricing on it. So my name is Mike Smith. I’m the President Aerocom. Let’s put our heads together on this.

My Recommendations

But first, if you’re a medium to a large size business and you’re looking into teams phone system and you’d like to know which operator connect vendors, your company should be quoting for the dial tone for teams phone system. Reach out, send me an email or give me a call (714.593.0011). I will help you find the right vendors to quote based on your company’s requirements. There are around 100 operator connect vendors that you can quote. Not all of them are good, so absolutely reach out. Contact me. I’m a broker for all the major ones out there. I’ve been doing this for over 20 years and I won’t charge you anything to get my recommendations. There is no fee. There’s no broker fee or anything. So there’s no excuse not to at least reach out and see what I have to say. It’s the reason why I do these videos. So give me a try. Send me an email, give me a call. Also, don’t forget to hit the subscribe button so you don’t miss any of my future weekly videos that I’m putting out. And go check out our website Aerocominc.com. You can look at all the major service providers on there. You can filter by things like teams, phone system. You can read about the providers, you can watch videos on the providers, you can write reviews, you can read reviews, all kinds of cool stuff. So go check it out.

Teams Phone System Pricing Updated!

Okay. How much does teams phone system cost for a medium to a large sized organization? So meaning hundreds of employees or thousands of employees? Well, I’m going to get right to the meat of everything and tell you it’s going to cost around $2 per month per user to around maybe $17 per month per user. Now, that’s a big range.

Use Operator Connect Vendor

So let me explain a little bit. So the first thing is, if you’re a medium to a large size company and you’re purchasing teams phone system, you absolutely want to purchase the dial tone via operator connect, 99.9% of companies, That’s going to be the best fit every once in a great moon. I’ve heard of a very unique situation in where that’s not the best fit, but pretty much again, 99.9% of the time. Operator Connect is the way to go. If you want to know more about that in why that’s a separate video, go take a look at my video on Operator Connect where I explain a lot about that and why companies use that as the way to purchase teams phone.

2 Pricing Components

Okay. In terms of overall pricing, there are two pricing components when it comes to teams phone system. The first pricing component is the licensing and that’s actually what’s what has changed recently. for all Office 365 or Microsoft 365 licensing, except for E5, you will have to purchase a teams licensing add on called teams phone standard in that it enables teams phone system to work with your team’s application. It gives you all the features and buttons that you’re going to need for teams phone system. Again, it’s a licensing add on called teams phone standard and it used to cost $8 per month per user. But as of I think April 1st, Microsoft raised that price. Now it is $10 per month per user. I think it’s $10.50 on a month to month agreement. And then on a yearly agreement, it’s $10 per month per user. So that’s the pricing that’s changed. It’s gone up $2 and the $8 price, they’ve had that around since 2018 when Microsoft first launched, but they finally raised the price a little bit. It’s $10 per month per user now.

E5 License

 A lot of medium to large size organizations have an E5 license or they’re thinking about going to an E5 license. Well, if you have any five license now or you’re going to an E5 license, teams phone standard is included with that E5 license. And that’s either if you’re grandfathered in the old 365 licensing model where teams as a part of the 365 licensing model, or if you’re thinking about moving into E5 and you have to purchase teams separately, even if you purchase teams separately, if you have an E5 license, teams phone standard is going to be included with your team’s purchase. So all other licenses, all business standard business, premium, E1, E3, all those other licenses, you’re going to have to purchase teams phone standard as a licensing add on $10 per month per user. And then if you have an E5 license, you will not have to purchase that. That includes it. So that’s the first pricing component is the licensing add on.

Second Pricing Component

Now the second pricing component is your calling plan, which you’re going to be purchasing through Operator Connect. Now that calling plan is going to cost anywhere between, I’d say $2 per month per user to around maybe $8 per month per user for medium to large size organizations. Now that’s a big price range, right? Well, that price range is dependent on how many users you have and your calling patterns. So, for instance, if you have 50 users as opposed to 5000 users, you’re going to get a big volume discount on that pricing. Also, if your company has maybe 5000 users, but you don’t use the phone a whole lot, there are service providers out there that have unique pricing structure for companies like yours, for instance, they might only charge you for the call pads like between $7 to $20 per month, per simultaneous call path, and then maybe only a dollar per month per user, as opposed to maybe charging you $5 per month per user for all 5000 users. You can see that if you don’t use the phone a whole lot, if you have 5000 users and you’re only maybe using, you know, say, 500 simultaneous calls at your busiest time of day, that’s going to be a lot less expensive for you to do a call path based pricing model as opposed to a flat rate pricing model of five $6 per month per user.

Calling Plans

So you can do the math. It’s a lot more affordable. And what it comes down to is I’d say if you have a lot of users and you don’t use the phone a whole lot, you might end up being averaging about $2 per month per user if you have a, you know, maybe a smaller amount of users, maybe 100, 200, 300 users, and you use the phone a decent amount, you’re probably going to pay more along the lines of five $6 per month per user for your calling plan through operator connect. So that’s why that range is pretty big because again, it depends on your calling patterns. It also depends on the number of users your company has. So then we add those two together, you add the licensing add on, and then you add your calling plan through operator connect, and that’s where you’re going to get your total cost. So that’s why you have this huge range of $2 per month per user. That would be a company that’s got a lot of users that doesn’t use the phone a whole lot and already has an E5 license. So they’re paying on average $2 per month per user for their operator connect calling plan. And that’s the only cost they have to pay compared to a company who has an E3 license today, has to get that extra teams phone standard license for all their users and it has to get a calling plan on top of that, that may be five $6 per month per user, $8 per month per user.

Still Confused? Reach out and Contact Me

So that’s where you’re getting that total cost range of around $2 per month per user to around maybe 17, $18 per month per user. All right. I hope that helps. Again, if you like the exact cost for your company and know which operator connect vendors your company should be quoting. Reach out, send me an email or give me a call (714.593.0011). I’m a broker for all the major vendors out there and I will tell you which operator connect vendors your company should be coding. I’ll introduce you to those vendors, introduce you to the right salespeople to talk to. They’re all oversee the coding process, make sure you get a good demo from that vendor. And also make sure you get the lowest pricing possible quoted from the vendor of your choice. And how much do I charge for all that? Nothing. I’m a broker for all the major vendors. The vendors actually pay me my broker fee, so you my customer doesn’t have to pay me anything. So join the thousands of other customers who have reached out and gotten my help, helping them make a lot better decision in a fraction of the time. It’s the reason why I do these videos. So if you got something from a video, that’s the way you can say thank you. Send me an email, give me a call. Especially if you’re a medium to large size company. That’s really my area of expertise. I’d love to help you with this. All right. Again, hit the subscribe button so you don’t miss any of my future videos that I put out every single week. And go check out our website Aerocominc.com. Thanks for watching and I’ll catch you on the next one.