The European Commission has proposed plans to stop charging premiums for receiving calls abroad.
The proposal would mean citizens of EU member countries would no longer have to pay more than the price of a long-distance phone call for incoming calls while abroad in Europe from July 1, 2014.
The proposal also includes granting the EU veto power over sales of mobile spectrum by member countries.
Others involve bringing down consumer charges and cutting red tape faced by firms with roaming businesses and enabling service providers to levy additional charges for carrying data-heavy services at high speeds.
The European Commission's digital agenda commissioner, Neelie Kroes, said: "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."
The latest reform is expected to boost telecom firms' investment in broadband network infrastructure and spark faster roll out of 4G wireless systems and 4G internet services, which are already being offered in Asia and the US.
European Commission President Jose Manuel Barroso said further progress towards a European single market for telecoms is essential for Europe's strategic interests and economic progress.
"For the telecoms sector itself and for citizens who are frustrated that they do not have full and fair access to internet and mobile services," Barroso said.