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Licensing and Pricing Updates for Teams Phone and Power BI Coming July 1, 2025

JohnnyMcCormick's avatar
Apr 03, 2025

On April 1, 2025, we updated pricing for commercial customers of Teams Phone and Power BI. Beginning July 1, 2025, Microsoft will implement licensing and pricing updates for new and renewing US government customers across all government cloud deployments: GCC, GCC High, and DoD.  

Currently, there are no pricing changes for customers who purchase Teams Phone or Power BI through Microsoft 365 G5 or Office 365 G5 annual term subscriptions with annual billing. 

Given local requirements, we will implement the price increase in a phased manner over multiple years. 

Microsoft Teams Phone 

Teams Phone is enhancing communication experiences for organizations of all sizes. This price update marks the first price increase since Teams Phone launched in 2017. It is reflective of the increased value we have delivered to our customers to enable flexible, smart, and reliable calling natively in Teams. 

Over 20 million PSTN enabled users have turned to Teams Phone for its AI-powered features that can enhance communication and keep organizations connected with improved management, reliability, and survivability. 

 

 

New effective per user per month prices by start dates (price % change). % change is year over year. 

SKU 

7/1/2025 

7/1/2026 

7/1/2027 

7/1/2028 

Teams Phone GCC 

+10% 

+10% 

+3% 

N/A 

Teams Phone GCCH/DOD 

+10% 

+10% 

+3% 

N/A 

Teams Phone FLW GCC 

+10% 

+10% 

+3% 

N/A 

Teams Phone with Calling Plan GCC 

+10% 

+3% 

 N/A 

N/A 

 

Power BI 

Power BI is transforming how organizations share data-driven insights and enable business users to analyze and visualize their data. Today with over 375,000 customers and 30 million monthly active users, Power BI is recognized as a leader in the business intelligence space. Starting on July 1, 2025, we're making updates to our per user pricing. This price increase, the first since the product introduction in 2015, is reflective of all the investment in the innovation we have delivered over the years. 

 

 

New effective per user per month prices by start dates (price % change). % change is year over year 

SKU 

7/1/2025 

7/1/2026 

7/1/2027 

7/1/2028 

PBI Pro GCC 

+10% 

+10% 

+10% 

+5% 

PBI Pro GCCH/DOD 

+10% 

+10% 

+10% 

+5% 

PBI Premium Per User GCC 

+10% 

+9% 

N/A 

N/A 

PBI Premium Per User GCCH/DOD 

+10% 

+9% 

 N/A 

N/A 

 

Preparing for the Pricing and Licensing Updates 

As the July 1, 2025, changes approach, it’s important to understand how they may affect your organization’s licensing strategy. The steps below can help guide planning and give you the information needed to make informed decisions:  

Stay Connected to the Microsoft Public Sector Tech Community 

For the latest updates on Microsoft product changes and licensing guidance for government customers, follow the Microsoft Public Sector Tech Community. 

  

 

 

Updated Apr 03, 2025
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