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Commissioner Viviane Reding last year proposed a package of measure to boost competition, cut tariffs and give consumers a wider choice of services.

EU states and the European Parliament have the final word and many lawmakers and governments balked at some of her proposals, particularly the creation of a new super telecoms regulator and giving the European Commission a veto over national regulators.

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month, parliament adopted a version of the package with significant changes and Reding's revised proposal shows she has accepted nearly all of the amendments.

In particular, Reding has backed parliament's vote to quash a French attempt to turn ISPs into policeman, able to cut off subscribers who ignore warnings not to download copyright material illegally. Such action could only be ordered by a court, much to the relief of operators.

Reding has also agreed to ditch her plan for a new pan-EU telecoms agency that would oversee markets, internet security and spectrum.

Instead she has accepted parliament's slimline alternative which Reding has renamed the Office for the European Telecoms Regulators (OETR). It will not cover internet security or spectrum. Some EU states still want an even more modest body.

EU states are due to reach a deal on the package next month before a joint deal with parliament is sealed next year. The final shape of the package is now largely set in stone.