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Microsoft is increasing prices for Teams phones and introducing a monthly billing option

  • November 14, 2024
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Microsoft is increasing the price of Teams Phone and adding a monthly billing option for select annual subscriptions to its cloud services. Microsoft is increasing monthly prices for

Microsoft Teams

Microsoft is increasing the price of Teams Phone and adding a monthly billing option for select annual subscriptions to its cloud services.

Microsoft is increasing monthly prices for Teams Phone Pro plans for business customers. These prices are effective April 1, 2025. Additionally, Microsoft is adding a monthly billing option for Microsoft 365 Copilot and other select services for users on an annual contract. These prices are valid from December 1, 2024.

Price increase for Teams phones

Microsoft announces the Teams Phone pricing updates in a blog post. These updated pricing reflects the value they have added to enable flexible, intelligent, and reliable native calling in Teams.

Starting April 1, 2025, existing and new customers will pay ten dollars per user per month for the standard Teams Phone subscription. So far it’s been eight dollars. The cost for frontline workers will increase from $4 to $5 per user per month. There are currently no pricing changes for customers purchasing Teams Phone through Microsoft 365 E5 or Office 365 E5 annual billing plans.

Possibility of monthly billing

In addition to the Teams Phone pricing updates, Microsoft is adding more flexible payment options. Starting December 1, 2024, Microsoft 365 Copilot, Microsoft 365 Copilot for Sales, and Microsoft 365 Copilot for Service customers will have the option to pay monthly instead of an annual upfront payment. This increases the prices for the annual subscription by five percent.

It’s important to note that customers who choose to pay monthly within an annual subscription are still locked in for the entire year. Early cancellation is not possible without fines or other consequences.

Source: IT Daily

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