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It was unveiled by Apple chief executive Steve Jobs last night and is expected to lead to a renewed high street battle between the company and rivals Nokia.
The i Phone 3G is a cheaper and more powerful replacement for the £269 original and is part of a drive to boost sales.
It has a high-speed 3G internet connection and GPS satellite positioning.
Under the agreement - which still needs to be confirmed by the full European Parliament and all member states - making calls, sending texts and using the internet will now cost the same in any country of the EU, starting from 15 June.
The caps on wholesale roaming charges - the amount phone operators charge each other when their customers use their phones abroad - were the last piece of the puzzle of a long-running plan needed to end roaming fees.
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