To enable SMS in Microsoft Teams you will require a specific type of Microsoft Teams license. Every active user must have one of the following license types:
- Teams Phone Standard (Default License)
- Microsoft and Office 365 Enterprise E5
- Microsoft 365 and Office 365 Education A5
- Microsoft 365 and Office 365 Government G5
- Microsoft 365 and Office 365 Nonprofit E5.
Note: Teams Calling Plan license will NOT work. Please update your license to use any of the above options. Teams Phone Standard license is the most cost effective option and is discounted by Microsoft.
To purchase the license navigate to your Organization Portal and click on Marketplace.
Search for Microsoft Teams Phone Standard and click on Details
Buy licenses
Select your license count
Assign licenses
Assign Microsoft Teams Phone Standard Licenses to your users
For a full breakdown of the difference between licenses please refer to Microsoft Documentation.