European regulators are set for another bruising battle with mobile phone operators after launching a campaign to slash the cost of sending a text message or downloading data when abroad.

Accusing the industry of adopting "a bunker mentality" and of failing to reduce prices voluntarily, Viviane Reding, the Telecoms Commissioner, said that since the market was not functioning she had no choice but to regulate.

"Using your mobile phone abroad in the EU should not cost unjustifiably more than at home, whether for making calls, sending texts or surfing the web. Europe's 37 million tourists and 110 million business travellers are waiting for the promise of the borderless single market to finally have a positive impact on their phone bills," she said.

The European Commission wants to set a cap of €0.11 (just over eight pence) for sending a text message from one EU country to another. Currently, the average cost is €0.29 — ten times the price of a domestic message. Many tariffs are even higher. A tourist from Britain holidaying in Spain can pay more than double the average: €0.63.

The initiative comes just a year after the Commission, looking to give the public tangible benefits from EU membership, secured approval for legislation forcing mobile operators to reduce the cost of making or receiving a call when abroad.

If the latest proposal is also approved by national governments and the European Parliament, the new reduced rates for texting and surfing could operate from next summer.

The move won cross-party support from British MEPs. Arlene McCarthy, the Labour chairwoman of the consumer protection committee, said: "Industry has continued to resist any moves to cut costs for consumers and we are now left with no option but to legislate."

Giles Chichester, the Conservative industry spokesman, said: "Ideally, we would like the industry to act itself to cut prices, but if it fails, the EU should be prepared to act in the interests of consumers."

The GSM Association, which represents operators such as Telefonica, Orange and Vodafone, criticised the plan. It pointed out that since the ceiling had been set last year on voice roaming charges when abroad, usage had increased by 11 per cent, but industry revenues fallen by 26 per cent.

Tom Philips, the association's head of public policy, said: "The overall concern of the industry is that it's a continuation of politically motivated regulation and it's micro regulation."

In addition to cutting the cost of texting, the Commission wants mandatory billing by the second after the first 30 seconds to reduce expense for texters who finish their message just after a new billing minute has begun.

The package includes moves to warn customers of the data roaming charges they will incur when abroad. The measure is designed to put an end to bill shocks of the kind one received when charged €40,000 for downloading a TV show over a roaming mobile line.

The Commission is continuing the drive it began last year to reduce the cost of roaming phone calls. Now standing at €0.46 per minute for calls made when abroad and €0.22 for those received, it wants to cut these to €0.34 and €0.10 respectively over the next four years.

An estimated 2.5 billion text messages are sent every year in Europe in a market worth around €800 million. It is one of the main means of communication among the young and, according to Commission figures, two out of five 15-24 year olds only text when abroad.

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