The cost of phone calls within the European Union could be capped at 19 cent a minute.
A provisional deal has been reached by negotiators from the European Parliament and Council.
The deal would also see texts limited to 6 cent each, "while making sure that the new rules would not distort competition, innovation and investment".
MEPs also say the agreement, if approved, will allow everybody in the EU to "enjoy the best possible internet connection" by introducing measures to allow for new high-speed 5G networks.
However, the proposed European Electronic Communications Code now has to be approved by member states before it becomes law.
Finnish MEP Miapetra Kumpula-Natri said a deal was reached in the early hours of the morning, following almost 12 hours of talks yesterday.
She added: "Happy that we will now encourage investment, while making sure competition will remain effective. New spectrum will boost us to 5G era."
Commissioner for Digital Economy and Society, Mariya Gabriel, said: "The new telecoms rules are an essential building block for Europe's digital future.
"After several months of tough negotiations, we have agreed on bold and balanced rules to provide faster access to radio spectrum, better services and more protection for consumers, as well as greater investment in very high speed networks.”
- Digital Desk