Cisco Webex Calling vs Microsoft Teams Phone: Licence Cost Comparison

The Fundamental Cost Question

The headline per-user rate comparison — Webex Calling Professional at approximately $15 per user per month versus Microsoft Teams Phone add-on at $10 per user per month — is misleading because it ignores a critical variable: what Microsoft licensing your organisation already has. The correct comparison requires understanding the incremental cost of each platform given your existing subscriptions, not a standalone per-seat rate comparison.

This is not a vendor-neutral comparison in either direction. Microsoft's cost advantage is strongest among heavy M365 users; Cisco's cost advantage is strongest among organisations with complex telephony requirements, Cisco contact centre infrastructure, or no existing Microsoft investment. Our broader Cisco collaboration licensing guide provides context for how Webex Calling fits within the full Cisco collaboration portfolio.

Microsoft Teams Phone: The True Cost Structure

Microsoft Teams Phone requires a valid Microsoft Teams licence, which comes with any Microsoft 365 or Office 365 subscription. Teams meetings, messaging, and basic collaboration are included in M365 Business Basic, M365 E1, and M365 E3. But PSTN calling — the ability to make and receive calls to the telephone network — requires the Microsoft Teams Phone add-on or an E5 plan.

Licence Layer 1: The Base M365 Plan

M365 E3 runs approximately $36 per user per month. M365 E5 runs approximately $57 per user per month. M365 E5 includes Teams Phone Standard at no additional charge. M365 E3 does not — it requires the Teams Phone add-on, currently priced at approximately $10 per user per month, bringing the effective telephony cost to E3 ($36) plus Teams Phone ($10) = $46 per user per month for the full productivity and telephony stack.

Licence Layer 2: PSTN Calling Plans

The Teams Phone add-on enables PBX features but does not itself provide PSTN connectivity. Microsoft offers Calling Plans (Microsoft-provided PSTN service, approximately $12 to $15 per user per month for domestic calling) or Operator Connect (third-party carrier integrated into Teams admin centre) or Direct Routing (connect your existing SIP trunk to Teams via a session border controller). Domestic Calling Plan adds approximately $12 to $15 per user per month on top of the Teams Phone add-on, bringing the all-in Microsoft telephony cost to approximately $22 to $25 per user per month for Teams Phone plus Calling Plan, on top of the base M365 plan cost.

Organisations using Direct Routing or Operator Connect can often reduce PSTN costs significantly versus Microsoft's Calling Plans, depending on their existing carrier contracts and calling volumes. See our Cisco Smart Licensing guide for context on how Cisco manages analogous PSTN connectivity options through Webex Calling's BYOPSTN approach.

Webex Calling: The True Cost Structure

Webex Calling is a standalone cloud telephony platform. It does not require a Microsoft licence base. The licence cost is the user subscription, and the PSTN cost is separate.

Webex Calling Licence Costs

Webex Calling Professional user licence: approximately $15 to $16 per user per month at list for full PBX features. Webex Calling Standard user licence: approximately $10 to $12 per user per month for basic calling without advanced PBX functions. Common Area licences: approximately $7 to $9 per device per month. These rates are before EA negotiation — at enterprise volumes under a Collaboration Flex Plan EA, expect 15 to 25 percent reduction. Our Cisco ELA guide covers EA pricing structures in detail.

Webex Calling PSTN Options

Webex Calling connects to the PSTN through Cisco's Cloud Connected PSTN (carrier partners embedded in Webex), Bring Your Own PSTN (BYOPSTN via SIP trunk to Webex), or Local Gateway (on-premises survivable routing). The Cloud Connected PSTN pricing varies by carrier partner and region but is broadly competitive with Microsoft's Calling Plans. BYOPSTN allows organisations with existing negotiated PSTN contracts to leverage those rates, which for high-volume enterprise callers can be substantially lower than either Microsoft or Cisco carrier partner rates.

Scenario-Based Cost Comparison

Scenario 1: Heavy Microsoft Shop on M365 E3

Organisation already on M365 E3 ($36/user/month) for 5,000 users. Adding Teams Phone ($10) plus Operator Connect PSTN (~$8 negotiated) = $18 per user per month incremental telephony cost. Total per user: $54/month. Webex Calling alternative: Webex Calling Professional ($13 negotiated EA rate) plus BYOPSTN (~$8) = $21 per user per month telephony cost. But the organisation still needs M365 for email and productivity — say M365 E1 ($10/user/month) = total $31/month. In this scenario, Teams Phone wins on total cost when the organisation is already on M365 E3 — the incremental Teams Phone add-on is cheaper than running Webex Calling alongside the same or higher Microsoft base plan. Microsoft wins for heavy M365 users.

Scenario 2: No Existing Microsoft Investment

Organisation running Google Workspace ($18/user/month) for collaboration, evaluating a standalone cloud telephony platform. Webex Calling Professional ($13 negotiated) plus BYOPSTN ($8) = $21/month telephony cost on top of Workspace. Microsoft Teams Phone would require at minimum M365 E1 ($10) plus Teams Phone ($10) plus Calling Plan ($12) = $32/month telephony cost — more expensive than Webex Calling even before Google Workspace charges. Cisco wins for non-Microsoft shops.

Scenario 3: Complex Contact Centre Integration Required

Organisation running Cisco UCCE or PCCE contact centre, evaluating cloud telephony for knowledge workers. Webex Calling integrates natively with Cisco contact centre infrastructure through Cisco's unified platform, providing agent call routing, supervisor monitoring, and CTI integration without middleware. Microsoft Teams Phone requires third-party contact centre integration (CCaaS platforms like Genesys, NICE, or Five9 certified for Teams), adding integration cost and complexity. For organisations with Cisco contact centre infrastructure, the integration cost advantage favours Cisco significantly. Our deep-dive on UCCE versus PCCE licensing covers the contact centre infrastructure context. Cisco wins where Cisco contact centre is in use.

AI Telephony Features: The Hidden Cost Differentiator

Both platforms are adding AI-powered telephony features that generate real user productivity value but are priced differently — and this pricing difference is becoming a meaningful part of the total cost comparison.

Cisco's Premium AI Assistant for Webex Calling (call transcription, post-call summaries, AI-generated action items) is priced as a separate add-on at approximately $6 to $10 per user per month. Microsoft Copilot for M365 — which includes similar AI call intelligence features within Teams Phone — is priced at $30 per user per month but applies across all M365 applications (Word, Excel, Outlook, PowerPoint), not just telephony. For organisations that will deploy AI assistance broadly, the M365 Copilot value proposition extends well beyond telephony. For organisations that only need AI telephony features, Webex Calling's targeted AI add-on at $6 to $10 is meaningfully cheaper than paying for Copilot's full application scope.

Capability Comparison: Where Each Platform Leads

Beyond cost, the capability comparison matters for the decision. Cisco Webex Calling is widely considered superior for complex call routing scenarios — hunt groups, auto-attendant trees, call queues with complex routing logic, survivability for branch offices, and integration with legacy on-premises PBX infrastructure. Cisco's telephony heritage is 30+ years of enterprise PBX architecture; these capabilities are native and mature.

Microsoft Teams Phone has caught up significantly in basic PBX functionality, but still trails Cisco in complex enterprise telephony scenarios. The gaps are most visible in survivable branch office calling (critical for distributed enterprises), deep integration with physical desk phone hardware, and contact centre native integration. Microsoft's strength is the seamless experience within the M365 ecosystem — a Teams user making a call, reviewing a document, and scheduling a meeting in a single interface. Our Cisco ELA true-up guide is relevant for organisations managing Webex Calling deployment alongside other Cisco agreements. Our Cisco Meraki licensing guide covers how network infrastructure licensing intersects with the collaboration platform decision for enterprise buyers.

The Decision Framework

The Webex Calling versus Teams Phone decision should be structured around five questions. First: what Microsoft licences do you already have and pay for? If M365 E5, Teams Phone is already included. If M365 E3, the incremental Teams Phone add-on is modest. If no Microsoft investment, Webex Calling has an inherent cost advantage. Second: do you have a Cisco contact centre — UCCE, PCCE, or Webex Contact Center? If yes, Webex Calling's native integration creates platform value that the licence comparison alone does not capture. Third: what is your branch office survivability requirement? Cisco leads for distributed enterprises with complex survivability needs. Fourth: do you need AI telephony features, and how broadly will AI assistance be deployed? If AI use extends across all productivity apps, M365 Copilot is a better value carrier. If AI is telephony-specific, Webex Calling's targeted add-on is cheaper. Fifth: what is your negotiating position with each vendor? Cisco has discretionary discount authority for accounts evaluating Microsoft, and Microsoft competes aggressively for Cisco telephony incumbent positions. A credible competitive evaluation produces better pricing from both sides.