The proposals, released yesterday (11 September), are intended to kick-start the underperforming European telecoms sector, in comparison to its US and Asian rivals, and incentivise investment in ultra-fast broadband networks.
While the telecoms market has largely opened up to competition over the years, offering lower prices and better services to customers, the sector still operates largely on the basis of 28 national markets, the Commission said.
In particular, "there is no telecoms company that operates across the whole EU, and both operators and customers face differing prices and rules," the EU executive said in a statement.
The Commission's roaming proposals will see charges for receiving calls cross-border within the bloc eliminated, while a cap of €0.19 per minute for those making calls cross-border within the EU.
Neelie Kroes, the EU's digital agenda commissioner, said the legislative package was "great news for the future of mobile and internet in Europe."
"The European Commission says no to roaming premiums, yes to net neutrality, yes to investment, yes to new jobs. Fixing the telecoms sector is no longer about this one sector but about supporting the sustainable development of all sectors,” Kroes said.
Losses arising from cheaper calls will be offset by more calls
The Commission has acknowledged complaints by the larger operators that this could lead to lower profits, but it is confident that any losses will be compensated by the greater number of calls consumers will make as a result of the price slash.
The proposals would create a single regulatory passport enabling operators to offer services across the whole bloc, rather than seeking individual regulatory permits from the 28 national authorities. The plans stop short of creating a pan-European regulator for the sector however, though they suggest the idea should be explored fro the future.
Proposals to level the playing field for internet users by giving consumers equal access to internet services – so-called net neutrality – are tempered however.
Although ”blocking and throttling of internet content” is banned under the plans, companies will still be able to offer privileged add-on services to consumers so long as these do not impede the speeds and quality of basic services.
This will antagonise NGOs campaigning for pure net neutrality, but will satisfy industry claims that imposing a strict level playing field would cut off potential revenue from "apps", stifling innovation.
Spectrum coordination gives Commission whip hand
Meanwhile the EU executive will seek to coordinate the timing, duration and sale conditions of spectrum frequencies, in an attempt to give operators more certainty when investing across multiple European markets.
Although member states would retain overall control of the process of spectrum sales, they would be subject to scrutiny and sanctions from Brussels.
That move will be resisted by larger member states which benefit from spectrum auctions and consider the sector "off-limits".
Kroes now needs all 28 EU governments and the European Parliament to agree to the proposals, a process which can often takes two or three years.
Resistance will come from governments on spectra and NGOs on net neutrality, but the incumbent mobile telephone operators are also critical of some of the elements.
Telecoms group Etno – whose members include Deutsche Telekom, Telecom Italia, Orange and Telefónica - claimed the plan would not create the momentum required to achieve the EU's targets.