New Exchange Online Tenant Outbound Email Limits [MC1023294]

New Exchange Online Tenant Outbound Email Limits [MC1023294]

Message ID: MC1023294

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 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:

Phase Enable enforcement for tenant group Rollout start date
1 Tenants with <= 25 email licenses April 3, 2025
2 + additional tenants with <= 200 licenses April 10, 2025
3 + additional tenants with <= 500 licenses April 17, 2025
4 + all remaining tenants May 1, 2025

[How this will affect your organization:]

If your tenant exceeds its daily outbound sending limit further messages sent to external recipients will be blocked and senders will receive one of the following bounce messages (also known as Non-Delivery Receipts or NDRs):

  • Trial tenants: 550 5.7.232 – Your message can’t be sent because your trial tenant has exceeded its daily limit for sending email to external recipients (tenant external recipient rate limit)
  • Non-trial tenants: 550 5.7.233 – Your message can’t be sent because your tenant exceeded its daily limit for sending email to external recipients (tenant external recipient rate limit)

[What you need to do to prepare:]

Check the report in the EAC to see your tenant’s quota and current daily outbound email volume and whether or not any messages will be blocked once the TERRL is enabled for your tenant. If your current outbound email volume is well below the quota, you don’t have to do anything. If your outbound email volume is near or exceeding your quota, consider using Azure Communication Services email for high-volume email to external recipients instead. ACS email which offers significant advantages and features for high-volume email, especially for external recipients. Messages sent using ACS email are not counted against your Tenant External Recipient Rate Limit quota.

For more information about the Tenant External Recipient Rate feature and report please see this blog post:

Source: Microsoft

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1 Comment

  1. Mike Rosoft

    The introduction of the Tenant External Recipient Rate Limit (TERRL) marks a significant shift in how Exchange Online manages outbound emails. For admins, this means a new layer of oversight and responsibility. The ability to track outbound email volumes through the new reporting feature in the Exchange Admin Center is a game-changer. Admins will not only be able to monitor their quota but also receive insights into blocked messages. This transparency will undoubtedly help in planning and ensuring that communication flows smoothly without unexpected interruptions.

    For users, the impact is a bit more nuanced. While the limits may feel restrictive, they ultimately serve to enhance the overall service reliability by preventing misuse. However, it could lead to some frustration if a user unexpectedly hits the limit and faces blocked emails. The key takeaway for users is to stay informed about their organization’s email practices and ensure they’re not inadvertently contributing to quota issues.

    In terms of overall impact, these changes are likely to foster a more stable environment for email communication. By reducing the risk of abuse, Microsoft is helping to ensure that everyone can enjoy a reliable service. And let’s be honest, no one likes a bounce back, especially when you’re trying to reach that important client or send out your latest newsletter!

    As we navigate these changes, it’s crucial for both admins and users to engage in dialogue. What are your thoughts on the new limits? Are you excited about the reporting features, or do you see potential pitfalls? Share your insights and let’s create a conversation around how we can all adapt to these updates! For more discussions and insights, check out additional posts on mwpro.co.uk.

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