Microsoft Teams Licensing Guide 2025: PSTN, Auto Attendant, Call Queues & Common Area Phones Explained

Table of Contents

• Introduction: Why Licensing Matters in Microsoft Teams
• PSTN Users: Connecting Your Team to the Public Phone Network
• Auto Attendant: Your 24/7 Virtual Receptionist
• Call Queues: Managing High-Volume Inquiries Efficiently
• Common Area Phones: Simplifying Shared Spaces
• Cost-Saving Tips: Optimizing Your Microsoft Teams Licenses
• FAQ: Answering Your Top Licensing Questions
• Conclusion: Building a Scalable Communication Strategy

Introduction: Why Licensing Matters in Microsoft Teams

Microsoft Teams has evolved into a powerhouse for business communication, blending chat, video conferencing, and telephony. But with great flexibility comes complexity—especially when it comes to licensing.

“Many organizations underestimate the licensing nuances of advanced features like PSTN connectivity or auto attendants,” says Microsoft’s official documentation. “Getting it wrong can lead to unexpected costs or feature gaps.”

PSTN Users: Connecting Your Team to the Public Phone Network

What is a PSTN User?

A PSTN (Public Switched Telephone Network) user in Teams can make and receive calls to external phone numbers. Think of it as replacing traditional landlines with cloud-based calling.

Required Licenses: Phone System & Calling Plans

• Microsoft Teams Phone Standard ($8/user/month): Enables calling features like voicemail, call forwarding, and caller ID.
• Calling Plan or Direct Routing: Choose between Microsoft’s per-user domestic/international minutes or SIP trunk integration.

Example: TechSolutions Inc.’s PSTN Setup

TechSolutions, a 50-employee tech firm, migrated to Teams. Each PSTN user required:

• Teams Phone Standard: $8/user/month.
• Domestic Calling Plan: $12/user/month.

Total: $20/user/month, saving 30% vs. their legacy phone system.

Auto Attendant: Your 24/7 Virtual Receptionist

Key Features of Auto Attendant

Auto attendants greet callers, route calls via menus, and provide business hours info—no human intervention needed.

Licensing Requirements: Phone System + Additional Add-Ons

• Phone System License: Required for the auto attendant itself.
• Auto Attendant Add-On: $10/month per auto attendant (unlimited users).

Case Study: How ClinicPlus Streamlined Appointments

ClinicPlus, a healthcare chain, used an auto attendant to route patients to departments. They paid:

• 1x Auto Attendant Add-On: $10/month.
• 5x Phone System licenses for staff handling redirected calls.

Result: 40% fewer missed calls and happier patients.

Call Queues: Managing High-Volume Inquiries Efficiently

How Call Queues Work

Call queues place inbound callers in a virtual line until an agent is free. Features include hold music, position announcements, and overflow routing.

Licensing Breakdown: Beyond the Basics

• Phone System License for each agent in the queue.
• Call Queue Add-On: $10/month per queue (supports unlimited agents).

Real-Life Scenario: SupportFlow’s Customer Service Overhaul

SupportFlow, an IT helpdesk, implemented a call queue for 20 agents. Costs:

• 20x Phone System licenses.
• 1x Call Queue Add-On.

Total: $170/month (vs. $500/month for a legacy system).

Common Area Phones: Simplifying Shared Spaces

Use Cases for Common Area Phones

Common area phones are ideal for shared spaces like lobbies, break rooms, or conference centers. They offer limited functionality (e.g., emergency calls, internal dialing).

Dedicated Licenses Explained

• Common Area Phone License: $6.40/month per device.

Example: University Campus Deployment

A university deployed 50 common area phones across libraries and labs. Total cost: $320/month—no need for full user licenses.

Cost-Saving Tips: Optimizing Your Microsoft Teams Licenses

• Bundle Licenses: Microsoft 365 E5 includes Phone System and advanced compliance tools.
• Audit Usage: Remove unused licenses (e.g., retired auto attendants).
• Negotiate Enterprise Agreements: Larger organizations can lock in discounts.

FAQ: Answering Your Top Licensing Questions

Q: Can I use the same license for auto attendant and call queue?

A: No. Auto attendants and call queues require separate add-on licenses.

Q: Do common area phones need a Phone System license?

A: No—they require a dedicated Common Area Phone License.

Conclusion: Building a Scalable Communication Strategy

Choosing the right Microsoft Teams licenses ensures seamless communication without overspending. By aligning licenses with your specific needs—whether PSTN users, auto attendants, or common area phones—you’ll future-proof your setup.

“Licensing isn’t one-size-fits-all. Regularly revisit your strategy as your business grows,” advises Gartner’s UCaaS trends report.

Featured Snippet Target

“What licenses are needed for Microsoft Teams PSTN users?”
PSTN users require a Microsoft Teams Phone Standard license ($8/user/month) and a Calling Plan or Direct Routing for external calls.