Microsoft is raising the cost of Microsoft Teams Phone subscriptions starting 1 April 2025 to “reflect the continuous innovations [it has] delivered”.
The price of Teams Phone Standard for both new and renewing commercial customers is $10 per user per month, up from $8.
The pricing for Teams Phone for Frontline Workers and Teams Phone with Teams Calling Plan bundles has also been updated.
Teams Phone Standard for Frontline Workers will cost $5 per user per month, Teams Phone with Pay-As-You-Go calling for UK and Canadian users is $12 per user per month, while US users will be charged $13 per user per month.
Teams Phone with Calling Plan for US, UK, and Canadian users will cost $17 per user per month. Customers outside the US, UK, and Canada will pay $22 per user per month.
Finally, the Teams Phone with domestic and international calling package is being priced at $34 per user per month.
Microsoft will also charge businesses five percent more if they choose to bill their annual plan in monthly instalments.
For the time being, there are no planned changes for customer purchasing Teams Phone via Microsoft 365 E5 or Office 365 E5 annual term subscriptions with annual billing.
‘Flexible Billing’
Microsoft has introduced a new monthly billing option for Microsoft 365 Copilot and other pricing updates.
Available via Buy Online, CSP, and MCA-E, the tech giant’s “flexible” billing for Copilot subscriptions will be priced five percent higher than the annual billing option.
It was also revealed that the billing structure for all monthly billed products are being standardised and pricing for Microsoft Teams Phone has been updated.
Microsoft shared the new monthly payment plan, including the start date, via a tech community blog post:
“In response to customer and partner feedback for more flexible payment options for Microsoft 365 Copilot, we are pleased to introduce a monthly billing option for annual term subscriptions of Copilot.
“Starting on December 1, 2024, customers who purchase annual term subscriptions of Microsoft 365 Copilot, Microsoft 365 Copilot for Sales, and Microsoft 365 Copilot for Service will have the option to pay on a monthly basis instead of making an upfront annual payment.”
The annual billing price for Microsoft 365 Copilot, Copilot for Sales, and Copilot for Service annual subscriptions have not been changed, according to Microsoft.
Standardised Monthly Billing
The Microsoft 365 blog post explains that it is opting to standardise monthly billing prices in order to offer customers “cash flow flexibility” while also continuing to benefit from its services.
Both new and renewed annual term scription holders will be able to choose a monthly billing plan beginning on April 1st, 2025.
As with the monthly billing for Copilot, standardised monthly prices will have a five percent mark-up compared to annual plans.
When it comes to renew, customers looking to keep the current pricing may also switch from monthly bulling to annual billing with an upfront payment for the year.
Examples of product categories which will be affected by this price standardisation of monthly bills are Microsoft 365, Office 365, Enterprise Mobility and Security, Windows 365, Microsoft Dynamics 365 Services, Microsoft Power Platform, and “Other Online Services” from Bing Maps and Clipchamp to Microsoft Defender solutions and Microsoft Cloud add-ons.
