Microsoft is implementing a price increase for Teams Phone, adding a monthly billing option for certain annual subscriptions to its cloud services.
Microsoft is raising monthly prices for Teams Phone pro subscriptions for enterprise customers. These prices will be effective April 1, 2025. In addition, Microsoft is adding a monthly billing option for Microsoft 365 Copilot and other selected services for users with annual contracts. These prices will apply starting Dec. 1, 2024.
Teams Phone price increase
Microsoft announces Teams Phone pricing updates in a blog post. They say these updated prices reflect the increased value they delivered to enable flexible, smart and reliable native calling in Teams.
read also
Microsoft Teams gets threads and combined chats and channels
Existing and new customers will pay ten dollars per user, per month, for the standard Teams Phone subscription starting April 1, 2025. Previously, this amounted to eight dollars. The cost for front-line workers will increase from four dollars to five dollars per user per month. There are currently no price changes for customers who purchase Teams Phone through Microsoft 365 E5 or Office 365 E5 subscriptions with annual billing.
Monthly billing option
In addition to pricing updates for Teams Phone, Microsoft is introducing more flexible payment options. Starting Dec. 1, 2024, customers with Microsoft 365 Copilot, Microsoft 365 Copilot for Sales and Microsoft 365 Copilot for Service will have the option to pay monthly instead of an annual upfront payment. This will increase annual subscription prices by five percent.
read also
Microsoft raises price of private 365 subscriptions for Copilot
It is important to note that customers who opt for monthly payments within an annual subscription are still bound for the entire year. Canceling early is not possible, with no penalties or other consequences.