Azure AD Group Licensing for Microsoft 365 Add-ons

Rahul Sukumar 141 Reputation points

I have an on-prem AD that syncs with Azure AD. I purchased Teams Phone with Calling Plan and want to add this license for a subset of users via Azure AD group based licensing. The subset of users are assigned licenses via another group, who all have M365 premium plans that includes Teams.

I created a new group, and added the users I want to have this new license to it. I then tried to add just the new license of Teams Phone to this group via the Azure portal, but I get an error that the license assigned failed. Reading the details of the error, it says: "License operation failed. Make sure that the group has necessary services before adding or removing a dependent service.
The service Microsoft 365 Phone System requires Microsoft Teams, Skype for Business Online (Plan 2) to be enabled as well.
For more details on how to resolve products dependencies, see here."

As said before, all the users in the group have licenses for Teams via another group license assignment. I don't want all of them to have to have a license for Teams Phone, just a few. What am I missing here? Thanks!

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