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Guide

Microsoft 365 F1 and F3

Who qualifies for Frontline licences, what F1 and F3 include, what the 2026 increase did to them, and when F is the wrong plan.

Microsoft 365 F1 and F3 are for people who do not work at a desk with their own computer: shop floor, retail, logistics, field and care staff. F3 adds Windows Enterprise rights and Office editing on web and mobile; F1 is view-only. Since 1 July 2026 the two plans cost 33% and 25% more on list, so every desk worker wrongly on F, and every frontline worker wrongly on E3, now matters more than before.

F1 versus F3, side by side

Feature scope is hedged where Microsoft changes service descriptions. Prices are list prices from the price update.

Area F1 F3
Office apps Web and mobile, view-only (no editing). Web and mobile with editing. Desktop apps are not the point of this plan.
Teams Included in the standard SKU; a variant without Teams exists. Included in the standard SKU; a variant without Teams exists.
Mailbox No mailbox rights (the Exchange kiosk component only backs the Teams calendar). A 2 GB kiosk-type mailbox, per the current service description. Not a desk worker's mailbox.
Windows Enterprise rights No. Yes, Windows Enterprise E3 user rights.
List price per user and month, with Teams USD 3.00 (+33%) USD 10.00 (+25%)

Without Teams the list prices are USD 2.50 for F1 (+43%) and USD 8.93 for F3 (+29%). All SKUs, old and new, are on the price update page.

Who qualifies, and on which device

Frontline licensing follows how a person works. A shared device, a kiosk, a rugged handheld or a small-screen tablet fits. A person with their own full-size laptop on an office desk does not, whatever their job title. Microsoft's product terms set the exact device and screen-size conditions, and they can differ by agreement, so read them for your contract before you build an assignment rule on them.

F is the wrong choice for anyone who needs desktop Office apps, a full mailbox, or a dedicated PC for most of the day. Those users belong on a Business or Enterprise plan. The cheap licence saves nothing if the person cannot work with it or the company ends up outside the terms.

The cost lever: E3 users with frontline usage

Estates often license everyone on E3 because it was simpler at rollout. People who never open a desktop Office app, use Teams and a few web tools on a shared device, and barely touch their mailbox are frontline usage on an E3 licence. Moving them to F3 can be a large plan-mix correction in a company with a real frontline workforce. It needs per-user, per-service-plan usage, because sign-in data alone shows activity, not need.

Evidence-based reclaim is described on the licence reclaim page, and the wider picture is in the Microsoft 365 cost optimisation guide. A quantity can only be reduced within seven days after a purchase, a renewal or an added quantity, so decide this before the renewal date, not after.

Questions, answered

Who counts as a frontline worker?+
Someone who does not work at a desk with a dedicated computer: shop floor, retail, logistics, field service, care, hospitality. Microsoft's terms describe frontline use through how the person works and which device they use, not through a job title, so the title on the org chart is not the test.
Can a frontline user have a dedicated PC?+
That is where Frontline plans most often go wrong. They are designed for shared or non-desk devices and for small-screen devices; a person with their own full-size PC is normally a desk worker. The exact device and screen-size conditions are set in Microsoft's product terms and can differ by agreement, so check them before you assign F1 or F3 from a headcount list.
What is the difference between F1 and F3?+
F3 adds Windows Enterprise E3 user rights and Office editing on web and mobile (F1 is view-only). F1 is the lighter plan for people who mostly read, message and use line-of-business apps. The price gap is in the table above. If nobody needs the Windows rights, F1 is the cheaper fit for that person.
What did the July 2026 increase do to F1 and F3?+
Frontline plans rose by a larger percentage than almost anything else in the update. On list, F1 with Teams went from USD 2.25 to USD 3.00 (+33%) and F3 with Teams from USD 8.00 to USD 10.00 (+25%). The full table is on the price update page. Local currencies follow Microsoft's per-market lists.
Which users should move from E3 to F3?+
Those who hold E3 but only use Teams, a few web apps and a shared or mobile device, with no desktop Office use and no heavy mailbox use. Per-user usage data shows them; headcount does not. The reverse matters too: a desk worker on F3 is a compliance and productivity problem, not a saving.
When can we switch plans?+
Cleanly at renewal. A downgrade such as E3 to F3 is generally not possible mid-term under the New Commerce Experience, only at renewal, though this depends on the agreement. Under the New Commerce Experience a quantity can only be reduced within seven days of a purchase, a renewal or a mid-term addition, so a move from E3 to F3 should be decided before the renewal date. Confirm the details with your partner.

See who is on the wrong plan

Per-user, per-service-plan evidence instead of a headcount list.

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