Short answer
Anyone whose sign-in or self-service password reset relies on SMS or voice codes sent by Microsoft Entra ID is affected.
In detail: Who Is Affected by the Entra SMS Retirement?
What happens to them:
- A user whose only second step is SMS or voice must register a passkey at sign-in, and cannot skip the prompt, unless the business has set up a telephony provider and moved its users in time
- Users who already use an authenticator app code are not caught by that blocking prompt
- Self-service password reset by SMS or voice is in scope too
- Only the SMS and voice policies and legacy MFA policies are retired
Someone who is only eligible for the Global Administrator role moves on 1 February 2027, not 1 July. Microsoft provides a usage-analyzer script that shows who is in scope. Contact FirstNet for an Entra SMS readiness check.