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Does Changing Microsoft 365 E3 to Exchange Online Plan 1 Affect Distribution Lists?
Question details
The user needs to know if downgrading an enterprise user's license from Microsoft 365 E3 to Exchange Online Plan 1 will automatically remove that user from existing distribution lists.
- Product
- Microsoft 365
- Device & OS
- not provided
- Scenario
- An administrator is planning to downgrade a user's subscription tier and wants to ensure group and mailing list memberships remain intact.
- Observed behavior
- The user is seeking confirmation on how directory configurations and mail-enabled objects handle distribution list memberships during a license transition.
Before making any license changes in the Microsoft 365 admin center, verify the user's current mailbox size to ensure it is under the 50GB limit imposed by Exchange Online Plan 1.
Perform and Verify the License Downgrade Safely
Changing a user's license from Microsoft 365 E3 to Exchange Online Plan 1 does not inherently remove them from distribution lists, as memberships are tied to the mail-enabled user object, not the license level.
Distribution list membership is stored on the mail-enabled user or group object in Active Directory or Microsoft Entra ID. It is not automatically removed when an administrator changes the user's license tier.
However, transitioning from E3 to Exchange Online Plan 1 affects other services, such as reducing mailbox storage from 100GB to 50GB and removing access to desktop Microsoft Office applications.
Sign in to the Microsoft 365 admin center. Go to 'Users' > 'Active users', click on the user's name, and review the 'Groups' tab to document their current distribution list memberships.
In the user's properties panel, select the 'Licenses and apps' tab. Deselect the 'Microsoft 365 E3' license, select the 'Exchange Online Plan 1' license, and click 'Save changes'.
Wait a few minutes for the directory to sync. Return to the 'Groups' tab in the user's profile, or check the specific distribution lists in the Exchange admin center, to confirm the user remains an active member.
Maintain Productivity Without Expensive E3 Licenses
Downgrading from Microsoft 365 E3 to Exchange Online Plan 1 means users will lose access to desktop Microsoft Office apps like Word, Excel, and PowerPoint. You can seamlessly replace these desktop applications with WPS Office, a free, lightweight, and highly compatible alternative.
- 1. Download WPS Office: Visit the official WPS website and download the free desktop application for your operating system.
- 2. Install and Launch: Run the setup file and open the WPS Office suite to access Writer, Spreadsheet, and Presentation tools.
- 3. Open Existing Documents: Directly open your user's existing Microsoft Office files without needing any file format conversions.
Frequently Asked Questions
Does downgrading to Exchange Online Plan 1 affect the user's mailbox size?
Yes. Microsoft 365 E3 includes a 100GB mailbox, whereas Exchange Online Plan 1 provides a 50GB mailbox. You must ensure the user's mailbox is under 50GB before downgrading to prevent data loss or service interruption.
Will a user lose access to desktop Office apps if changed to Exchange Online Plan 1?
Yes. Microsoft 365 E3 includes desktop versions of Word, Excel, and PowerPoint. Exchange Online Plan 1 is strictly an email service, meaning the user will lose the rights to install and use the desktop Office suite.
Are Microsoft 365 Groups affected differently than Distribution Lists when changing licenses?
Like distribution lists, Microsoft 365 Group membership is stored on the user object in Microsoft Entra ID and is generally unaffected by a simple license downgrade. However, the user may lose access to related E3-specific group features (like advanced compliance tools).
