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Cannot add Azure Basic licenses to group

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I am trying to assign Azure Active Directory Basic licenses to a group but continue to receive the following message: "Could not assign license plan 'Azure Active Directory Basic' to Remote Staff." I followed the information in this link but they are using premium. Is that the issue?

http://blogs.technet.com/b/ad/archive/2014/09/18/simplified-license-assignment-with-azure-ad-and-ems.aspx


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