The European Commission will axe roaming charges within the next two years and guarantee net neutrality across the continent.
From June 2017, customers will be charged the same price for calls, texts and mobile data wherever they are in the EU.
Additionally from April next year, roaming charges will cut by up to 75 percent. As a result, operators will only be able to charge roaming customers up to €0.05 per minute for calls, €0.02 for SMS messages and up to €0.05 per megabyte of mobile data, the Commission said.
The terms follow negotiations between the European Commission, Parliament and the Council as the EC sets forth its proposal for a Digital Single Market reform in Europe.
The EC estimates a telecoms single market would bring the European economy €415 billion per year and create 3.8 million jobs.
Andrus Ansip, Commission Vice-President for the Digital Single Market, said: "Europeans have been calling and waiting for the end of roaming charges as well as for net neutrality rules. They have been heard.
“We still have a lot of work ahead of us to create a Digital Single Market. Our plans to make it happen were fully endorsed by Heads of State and Government last week, and we should move faster than ever on this."
The European Commission also announced new policies that mean net neutrality will be enshrined into EU law from April 2016.
A “guaranteed open internet” in Europe means that all network traffic will be treated equally by ISPs. As a result, users in all member states will be able to access the content they want, without it being unfairly blocked or slowed down except in “clearly identified public-interest exceptions”.
While “paid prioritisation” will no longer be allowed, customers will still be able to pay more for “specialised series” such as internet TV, provided they are not detrimental to the internet’s overall quality, the EC said.
The Commission said the policies would boost cross-border business and bring Europe “the strongest and most comprehensive open Internet rules in the world”.
Günther Oettinger, Commissioner for the Digital Economy and Society, said: "I welcome today's crucial agreement to finally end roaming charges and establish pragmatic net neutrality rules throughout the EU. Both are essential for consumers and businesses in today’s European digital economy and society.
“We will build on these important foundations in our forthcoming review of the EU's telecoms legislation.”