Microsoft Teams Adds PSTN Pay-As-You-Go Calling Plan

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A big change in the way Microsoft offers users PSTN calling plans for Microsoft Teams, Microsoft has added a A la carte calling plan

https://docs.microsoft.com/en-us/microsoftteams/calling-plans-for-office-365

From the Microsoft documentation:

  • A la carte calling plan: Licensed users can call numbers located in the country/region where their Microsoft 365 license is assigned to the user based on the user’s location, and international numbers in 196 countries/regions. Unlimited incoming minutes are included. No outgoing minutes are included. All outgoing calls are billed based on minutes used, either with call credits or Post Pay billing.

Talking Credits is Microsoft’s name for a “wallet” of preloaded money available to use against per-minute phone costs. Communication Credits can be configured to auto-recharge, i.e. continue to recharge automatically. Having Post Pay billing is a new type of billing for Microsoft PSTN that I don’t think we’ve seen before.

Previously, Microsoft only offered domestic and international calling plans that included a per-user minute allowance, so a number and bundle of minutes. These plans were combined for all users of the same plan type, in the same country, into a total pot that all of those users could use. When the group of users exceeded this group of minutes, then they paid by the minute. The lowest user plan you could get was 120 minutes per user per month. This is way beyond what most users use on average. In the United States, the standard domestic calling plan is $8.00 per user per month, and the standard domestic and international calling plan is $24 per user per month. You can also buy a national plan and pay for international calls by the minute with communication credits.

Microsoft currently offers calling plans for the following countries:

  • Austria
  • Belgium
  • Canada
  • Czech Republic
  • Denmark
  • Finland
  • France
  • Germany
  • Hungary
  • Ireland
  • Italy
  • Luxemburg
  • Netherlands
  • New Zealand
  • Norway
  • Poland
  • Portugal
  • Porto Rico
  • Romania
  • Singapore
  • Slovakia
  • South Korea
  • Spain
  • Sweden
  • Swiss
  • United Kingdom (United Kingdom)
  • United States (US) and Puerto Rico

Australia is also offered through a Telstra partnership.

My understanding is that Pay-As-You-Go calling plans will not be available to US or Puerto Rican renters. Microsoft says this is due to the complex tax calculations you have to perform in the US for pay-per-minute calls. They will be available for all other countries above.

How much do Microsoft Pay-As-You-Go calling plans cost?

In addition to the cost of outgoing minutes on a PAYG basis, there will be a cost per user per month:

Product names and SKUs are:

  • Microsoft Teams Calling Plan (Zone 1 country) MCOPSTN_PAYG_1 – $2 PUPM
  • Microsoft Teams Calling Plan (Zone 2 countries) MCOPSTN_PAYG_2 – $3 PUPM

Zone 1 is Canada and the United Kingdom.

Zone 2 is all other countries on the Calling Plan country list above, except the United States.

Pay-As-You-Go calling plans will not be available to US or Puerto Rican renters. Microsoft says this is due to the complex tax calculations you have to perform in the US for pay-per-minute calls. Oddly enough, a non-US/Puerto Rico-based multinational customer can purchase a Teams Pay-As-You-Go Zone 1 calling plan and assign end users who reside in the US or Puerto Rico. As the tax implications are different, I believe.

With Microsoft Standard Calling Plans, you can order and own 1.1 times the number of licensed phone numbers. So you can have some leeway in the same range. For example, if you have 50 total users with a domestic calling plan and/or an international calling plan, you can acquire 65 phone numbers (50 x 1.1 + 10). With the Pay-As-You-Go Calling Plan, you can only acquire one phone number per assigned license.

What are the Microsoft Pay-As-You-Go PSTN Calling Plan prices?

Microsoft publicly shares its billing costs per minute here, towards the bottom of the page. You can download the complete list.

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Will Microsoft Pay-As-You-Go PSTN Calling Plans be available through Microsoft Partners (CSPs)?

I’m still not clear on that; I asked. Microsoft now has a mechanism to allow paid telecom carriers through the Cloud Solution Provider (CSP). This was introduced initially to deal with the fact that when customers purchased calling plans if they wanted to use the minutes allocated to them they would need airtime credits, which originally could not be purchased through partners.

Currently, there is no partner discount or markup on overage minutes. I would expect the same for PSTN Pay-As-You-Go calling plans, but haven’t confirmed that yet.

Want to keep track of all the changes made to Microsoft Teams Phone?

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