Yes, you need a P1 or above for each user taking advantage of the CA policy to be license compliant:
Location Based Restriction to O365 - License Requirement
Rijin Anoop Raju
20
Reputation points
Hi All
I have a scenario wherein I need to restrict users from accessing O365 Applications outside of the organization.
Now I have done this using Azure's Conditional Access Policy and it is working fine.
The users have been assigned Basic/Standard Licenses.
My question is do we need to also buy an Azure AD Premium P1 Subscription for the same or is it ok to keep things as they are right now?
Is there any compliance related concerns related to this?
Hoping someone answers.
Thanks!!