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Phone System is Microsoft's technology for enabling call control and Private Branch Exchange (PBX) capabilities in the Microsoft 365 cloud with Microsoft Teams. Phone System works with Teams clients and certified devices.

Assign a license In the Microsoft 365 admin center, navigate to Active Users and click the resource account to which you want to assign a license. On the Licenses and Apps tab, under Licenses, select Microsoft 365 Phone System - Virtual User. Click Save changes.

Common area phones are associated with a user account that's assigned a Microsoft Common Area Phone license. The Common Area Phone subscription license includes a license for Microsoft Teams and a Teams Phone Standard add-on license. By itself, the CAP license does not include the ability to dial out to the PSTN.

Sign in to the Microsoft 365 admin center. Go to Billing > Purchase services > Add-ons. Scroll to find the Microsoft Teams Phone Resource Account license. Select Buy now.

Buy a Microsoft 365 Business, E1/E3, A1/A3, or G1/G3 plan and add Teams Phone with Calling Plan bundle licenses. This model will give you Teams Phone System PBX capabilities and a Microsoft Domestic Calling Plan. Choose this setup if you want all phone number management and billing to be handled by Microsoft.

A common area phone is typically placed in an area like a lobby or another area that is available to many people to make a call: a reception area, lobby, or conference phone. Common area phones are signed in with accounts tied to a Common Area Phone license.

For users that have an E5 license, the ?Phone System? license is included and is not required to be purchased separately. However, if you have just the E1 or E3 license you must purchase the Add-On Phone System license.