MC1023294 – New Exchange Online Tenant Outbound Email Limits

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check before: 2025-04-03

Product:

Exchange, Microsoft 365 admin center

Platform:

Online, World tenant

Status:

Change type:

Admin impact

Links:

Details:

Summary:
New Exchange Online Tenant Outbound Email Limits (TERRL) will be introduced to reduce misuse and ensure service availability. TERRL restricts the number of external recipients a tenant can email daily, based on purchased email licenses. Enforcement starts in stages from April 3, 2025. Check the EAC report to monitor usage.

Details:
Updated March 10, 2025: We have updated the content. Thank you for your patience.
To reduce the risk of misuse and abuse of Exchange Online resources and ensure service availability for all users, we'll soon introduce new tenant-level outbound email limits, known as the Tenant External Recipient Rate Limit or TERRL. The TERRL restricts the number of external recipients a tenant can send email to per day. If the limit is exceeded further messages sent to external recipients from the tenant will be blocked until the volume for the last 24 hours drops below the quota. A tenant's TERRL quota is calculated based on the number of email licenses a tenant has purchased. Here is the formula used to calculate a tenant's quota:
500 * (Purchased Email Licenses^0.7) + 9500
To help admins plan and track their outbound email volume, you'll find a new report in the Exchange admin center: EAC > Reports > Mail flow > Tenant Outbound External Recipients Rate. This report shows the current volume of external recipients, your tenant's daily quota, how much of the quota is used, and the number of recipients that were blocked if the limit was exceeded. The report will also show if enforcement for the limit is enabled or disabled. For example, for tenants who have more than 500 email licenses it will show "Disabled" until May 1st, the day we'll start to enable enforcement for tenants who have more than 500 licenses.
[When this will happen:]
This change will roll out in progressive stages over the month of March as per the following rollout schedule:
PhaseEnable enforcement for tenant groupRollout start date
1Tenants with <= 25 email licensesApril 3, 2025
2+ additional tenants with <= 200 licensesApril 10, 2025
3+ additional tenants with <= 500 licensesApril 17, 2025
4+ all remaining tenantsMay 1, 2025

Change Category:
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Scope:
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Release Phase:

Created:
2025-03-05

updated:
2025-03-11

Task Type

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summary for non-techies**

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Direct effects for Operations**

Outbound Email Restrictions
Users may experience blocked emails to external recipients if the daily limit is exceeded, leading to communication delays.
   - roles: Email Administrators, End Users
   - references: https://learn.microsoft.com/en-us/azure/communication-services/overview, https://techcommunity.microsoft.com/blog/exchange/introducing-exchange-online-tenant-outbound-email-limits/4372797

Increased Administrative Workload
Admins will need to monitor email usage more closely and may have to provide guidance to users on managing their email limits.
   - roles: Email Administrators, IT Support Staff
   - references: https://learn.microsoft.com/en-us/azure/communication-services/overview, https://techcommunity.microsoft.com/blog/exchange/introducing-exchange-online-tenant-outbound-email-limits/4372797

User Frustration
End users may face frustration due to unexpected email delivery failures, impacting productivity and communication.
   - roles: End Users, Team Leaders
   - references: https://learn.microsoft.com/en-us/azure/communication-services/overview, https://techcommunity.microsoft.com/blog/exchange/introducing-exchange-online-tenant-outbound-email-limits/4372797

Need for Alternative Solutions
Organizations may need to adopt Azure Communication Services for high-volume email, leading to additional costs and integration efforts.
   - roles: Email Administrators, Finance Managers
   - references: https://learn.microsoft.com/en-us/azure/communication-services/overview, https://techcommunity.microsoft.com/blog/exchange/introducing-exchange-online-tenant-outbound-email-limits/4372797

Training Requirements
Users may require training on new email limits and alternative solutions, increasing the need for training resources.
   - roles: Training Coordinators, End Users
   - references: https://learn.microsoft.com/en-us/azure/communication-services/overview, https://techcommunity.microsoft.com/blog/exchange/introducing-exchange-online-tenant-outbound-email-limits/4372797

Configutation Options**

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Opportunities**

Utilize Azure Communication Services for High-Volume Emails
Switching to Azure Communication Services (ACS) for sending high-volume emails to external recipients can prevent exceeding the Tenant External Recipient Rate Limit (TERRL). This ensures uninterrupted communication and leverages ACS's additional features.
   - next-steps: Evaluate current email volume and identify scenarios where ACS can be implemented. Create a plan for transitioning high-volume email workflows to ACS.
   - roles: IT Administrators, Marketing Teams, Sales Teams
   - references: https://learn.microsoft.com/en-us/azure/communication-services/overview, https://techcommunity.microsoft.com/blog/exchange/introducing-exchange-online-tenant-outbound-email-limits/4372797

Implement Monitoring and Reporting Strategies
By utilizing the new EAC report on outbound email limits, organizations can better monitor their email usage and avoid disruptions. This proactive approach helps in managing communication effectively.
   - next-steps: Set up regular monitoring of the EAC report and create alerts for when email usage approaches the defined limits. Train staff on interpreting the report and adjusting email practices accordingly.
   - roles: IT Administrators, Compliance Officers, Operations Managers
   - references: https://learn.microsoft.com/en-us/azure/communication-services/overview, https://techcommunity.microsoft.com/blog/exchange/introducing-exchange-online-tenant-outbound-email-limits/4372797

Educate Users on Email Best Practices
Providing training and resources to users about the new email limits and best practices for email communication can help minimize the risk of exceeding the TERRL and ensure smoother operations.
   - next-steps: Develop a training program and materials that inform users about the new limits, effective email communication strategies, and alternatives like ACS for high-volume needs.
   - roles: HR Teams, IT Administrators, Team Leaders
   - references: https://learn.microsoft.com/en-us/azure/communication-services/overview, https://techcommunity.microsoft.com/blog/exchange/introducing-exchange-online-tenant-outbound-email-limits/4372797

Potentional Risks**

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IT Security**

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explanation for non-techies**

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** AI generated content. This information must be reviewed before use.

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change history

DatePropertyoldnew
2025-03-11MC MessagesTo reduce the risk of misuse and abuse of Exchange Online resources and ensure service availability for all users, we'll soon introduce new tenant-level outbound email limits, known as the Tenant External Recipient Rate Limit or TERRL. The TERRL restricts the number of external recipients a tenant can send email to per day. If the limit is exceeded further messages sent to external recipients from the tenant will be blocked until the volume for the last 24 hours drops below the quota. A tenant's TERRL quota is calculated based on the number of email licenses a tenant has purchased. Here is the formula used to calculate a tenant's quota:
500 * (Purchased Email Licenses^0.7) + 9500
To help admins plan and track their outbound email volume, you'll find a new report in the Exchange admin center: EAC > Reports > Mail flow > Tenant Outbound External Recipients Rate. This report shows the current volume of external recipients, your tenant's daily quota, how much of the quota is used, and the number of recipients that were blocked if the limit was exceeded. The report will also show if enforcement for the limit is enabled or disabled. For example, for tenants who have more than 500 email licenses it will show "Disabled" until March 31st, the day we'll start to enable enforcement for tenants who have more than 500 licenses.
[When this will happen:]
This change will roll out in progressive stages over the month of March as per the following rollout schedule:
PhaseEnable enforcement for tenant groupRollout start date
1Tenants with <= 25 email licensesApril 3, 2025
2+ additional tenants with <= 200 licensesApril 10, 2025
3+ additional tenants with <= 500 licensesApril 17, 2025
4+ all remaining tenantsMay 1, 2025
Updated March 10, 2025: We have updated the content. Thank you for your patience.
To reduce the risk of misuse and abuse of Exchange Online resources and ensure service availability for all users, we'll soon introduce new tenant-level outbound email limits, known as the Tenant External Recipient Rate Limit or TERRL. The TERRL restricts the number of external recipients a tenant can send email to per day. If the limit is exceeded further messages sent to external recipients from the tenant will be blocked until the volume for the last 24 hours drops below the quota. A tenant's TERRL quota is calculated based on the number of email licenses a tenant has purchased. Here is the formula used to calculate a tenant's quota:
500 * (Purchased Email Licenses^0.7) + 9500
To help admins plan and track their outbound email volume, you'll find a new report in the Exchange admin center: EAC > Reports > Mail flow > Tenant Outbound External Recipients Rate. This report shows the current volume of external recipients, your tenant's daily quota, how much of the quota is used, and the number of recipients that were blocked if the limit was exceeded. The report will also show if enforcement for the limit is enabled or disabled. For example, for tenants who have more than 500 email licenses it will show "Disabled" until May 1st, the day we'll start to enable enforcement for tenants who have more than 500 licenses.
[When this will happen:]
This change will roll out in progressive stages over the month of March as per the following rollout schedule:
PhaseEnable enforcement for tenant groupRollout start date
1Tenants with <= 25 email licensesApril 3, 2025
2+ additional tenants with <= 200 licensesApril 10, 2025
3+ additional tenants with <= 500 licensesApril 17, 2025
4+ all remaining tenantsMay 1, 2025
2025-03-11MC Last Updated03/04/2025 19:56:402025-03-10T18:19:30Z
2025-03-11MC SummaryNew Exchange Online Tenant Outbound Email Limits (TERRL) will be introduced to restrict the number of external recipients a tenant can email daily. The limit is based on purchased email licenses. Enforcement starts in April 2025, with a phased rollout. Admins can track usage via a new report in the Exchange admin center.New Exchange Online Tenant Outbound Email Limits (TERRL) will be introduced to reduce misuse and ensure service availability. TERRL restricts the number of external recipients a tenant can email daily, based on purchased email licenses. Enforcement starts in stages from April 3, 2025. Check the EAC report to monitor usage.

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