Euro MPs voted to back new laws which will slash prices by up to 75 per cent, to ceilings of 34p a minute for making, and 17p for receiving calls. 

From late summer the cost of a four-minute call home  from France, Italy, Spain and Portugal will drop from £3.80 to £1.53. Receiving a call could cost 75 per cent less.

"Today is a good day for consumers and business travellers alike," said EU Telecoms commissioner Viviane Reding.
The clampdown on excessive "roaming" charges will cost the networks £6billion a year - but they are likely to put up other charges to cover their losses.

Rob Barnes, spokesman for http://www.Moneysupermarket.com, said: "Operators have hidden behind the defence of having to pay 'other' European operators to carry calls.

"Yet T-Mobile and Deutsche Telekom are the same company, as are Orange and France Telecom."