Under the new regulation, mobile operators must offer their customers a monthly cut-off limit of 50 euros ($65) while they are surfing the Internet in other European nations. They can also offer their customers any other limit. Mobile users will now receive a warning when they hit 80 percent of the chosen limit.

"Protection against data roaming bill shocks is a useful step towards building customers’ confidence to use mobile networks to surf the Internet when traveling around Europe," said Neelie Kroes, Digital Agenda Commissioner.

"Such confidence is essential if people and businesses are to use the Internet to its full potential".

Mobile customers have until July 1, 2010 to make a choice of what they want their cut-off limit to be. Mobile users who do make a choice will have a cut-off limit at 50 euros by default.

 The EU says the move will guarantee more transparency and protections for consumers, and it will protect them from large bills for using data roaming services.
 

Reding’s proposal is now being distributed to all other EU Commissioners before they formally implement it in early October. The EU’s 27 member states and the European Parliament must also approve the measure.

Around 2.5 billion texts are sent every year by roaming customers in the EU and cost about 10 times more than domestic texts.

Roaming texts account for 97 percent of pure revenue for operators, Reding said in July. A roaming text costs about 29 euro cents to send.

The proposal extends by three years to 2013 restrictions, which are currently in place on roaming voice calls. The voice roaming law has been a popular policy in the EU.

Reding also plans on introducing changes to billing. Instead of charging by the second she wants to charge by the 31st second of a call to prohibit operators charging by the minute for a call that lasts just a few seconds.

The billing changes will likely face resistance as a number of EU states have laws that require billing by the second from the first second.

Reding is also proposing a wholesale cap of 1 euro per MB to surf online using a mobile phone or laptop. The current price is about 3 -4 euros.