Introduction: New commerce overage for telco pay-as-you-go

Appropriate roles: Admin agent | Sales agent | Global admin


The new commerce experiences for license-based services include many new capabilities and are available to all Cloud Solution Provider (CSPs). For more information, see new commerce experiences overview.

Some license-based products include services with allocated calling plans that typically include a per-license allocation for minutes per month, usually 120 per license.

In traditional license-based partner scenarios, there wasn't a way to enable service usage beyond the monthly limits. Customers needing more than 120 minutes needed to purchase communication credits, or comm credits themselves directly from Microsoft. These communication credits weren't offered in Partner Center.

Using new commerce telco pay-as-you-go

This limitation has been addressed in new commerce allowing the partner to enable overage capabilities for services that allow it. Partners can purchase offers that include overage capabilities. These offers are identified in the price list tags column that IncludeOverage. The catalog SKU also includes a property to determine the SKU supports the overage capability. Partners purchase the offers and the system configures an overage subscription that has no cost. It only collects costs when customer’s users eclipse the allocated monthly calling minutes that come with the offer purchased.

Partners can identify which product skus include overage capabilities by

  • Viewing the partner center catalog product SKUs
  • Filtering the new commerce price list by includesOverage in the tags column

Partners purchasing products with overage enable it by accessing the Manage Overage in the Manage Subscriptions page. The Manage Overage interface enables the partner to activate and assign which Azure subscription the overage charges will flow to. At any time, the partner can turn off overage by assigning the consumption subscription to None.


Manage overage requires the ability to create an Azure plan. By default, partners cannot provision Azure plans using their sandbox accounts. Partners who need to do so with their sandbox account must apply for access. More information can be found in the Azure plan sandbox documentation.

Partners assign overage or disable it by the Manage Overage feature on the subscriptions list. Manage Overage is only accessible if the partner has subscriptions that enable overage. Monthly overage charges will accumulate to the subscription assigned and will be identified in the partners reconciliation file. Partners can track overage usage by visiting the Microsoft Cost Management capabilities in the Azure portal.

Partners can trace overage usage by going to the Azure portal and using the cost management capabilities and features.

Pricing and margins

Telco pay-as-you-go is billed based on monthly usage when the customer uses the number of calling minutes for the plan they have. Partners can discover and download the pricing for these charges at the Microsoft Teams Phone and Calling site. Partners can go to the See rates for where you want to call option on the page to download and view the rates for various calling plans.

The pricing and calling plan overage charges aren't specific or reduced for the Cloud Solution Provider (CSP) audience. Charges are channel agnostic. There aren't CSP discounts or margins for overage charges.

Important details about overage

  • Purchasing a license-based product SKU that includes overage capabilities will only purchase the license-based product. Partners will need to take another step after purchasing to turn overage on by going to the subscription management page and clicking Manage overage
  • Only Admin Agents for the transacting partner can enable overage after the license-based purchase.
  • Enabling overage will create a no-cost Azure plan and an associated default Azure subscription Subscription 1 specifically for overage consumption. If the Azure plan already exists, enabling overage will create the new subscription under the existing Azure plan. Partners can always view or reassign overage to other subscriptions in the Manage overage. Customers that aren't yet on Azure plan (older Azure) will need to transition to Azure plan before they can enable overage.
  • Telco pay as you go charges will not receive partner earned credit (PEC). Partners should expect to be charged and billed the amounts in the Microsoft Teams Phone and Calling site.

Overage assignment is determined by the first in rule. If a partner purchases E5 with calling plans for a new customer, the partner will have overage assigned to their consumption subscription. When a second partner purchases another copy of E5 with calling plans, the system will respect the first partner's purchase and assignment. Partners can always manage overage from the subscriptions page to disable or turn it off by assigning overage to None.

Overage settings are per service per customer. Only one overage subscription can be assigned at a time. If overage needs to be changed from one partner to another, the three parties involved must first agree. After they agree, the existing partner can set overage to None to enable the other partner to set overage to their subscription.

Telco pay-as-you-go APIs

  • SKU properties include a consumptionType property to help the partner identify whether a SKU enables overage
  • Get overage to understand if any overage is currently set up for your customer
  • Update overage to update customer's overage to an Azure subscription or to set it to None