Microsoft Mandated Pricing Updates for Annual Subscriptions and Teams Phone

Microsoft has announced several commercial and pricing updates. The updates include introducing a new monthly billing plan for Microsoft 365 Copilot, a 5% premium on subscriptions paid monthly and updated pricing for Microsoft Teams Phone.

Monthly Billing Price Increase for All Annual Term Subscriptions

Effective April 1, 2025, all subscriptions with annual commitments paid monthly will also incur a 5% premium. The 5% premium will be applied to new subscriptions purchased on or after April 1, 2025. Existing subscriptions will incur the pricing premium at the renewal on or after April 1, 2025.

Those customers wishing to move from annual commitments paid monthly to annual commitments paid annually can do so at renewal.

Microsoft Copilot

Starting on December 1, 2024, customers who purchase annual term subscriptions of Microsoft 365 Copilot, Microsoft 365 Copilot for Sales, and Microsoft 365 Copilot for Service will have the option to pay on a monthly basis instead of making an upfront annual payment. The monthly billing option for annual term subscriptions of Copilot will be priced 5% higher than the annual billing option.

Microsoft Teams Phone

Microsoft will update its annual billing price for annual term subscriptions for Microsoft Teams Phone starting April 1, 2025. For new and renewing customers, the price of Teams Phone with Calling Plan (for customers in US/UK/CAN): $17 per user, per month.