The European Union on Tuesday said it has drafted a blueprint for the reformation of EU telecom rules, addressing two primary issues of hiking competition and trimming the prices for users.

“We have a draft deal that was concluded at a very late hour last night,” European Commission spokesman Martin Selmayr said.

The reform postulates on the establishment of a new EU supervisory body- the Body of European Regulators in Electronic Communications, or Berec, enhance consumer rights and permits regulators to disintegrate telecom companies, if required as a means to step up competition.

As sought by telecoms commissioner Viviane Reding, the new agency will not deliver a veto to the commission over decisions taken by national regulators in a scenario when they do not meet the EU executive''s competition requirements.

The reform also seeks to make it harder for a national regulator to shield a local operator from competition.

The major telecom companies have been saved from the splitting of their businesses into service delivery and network maintenance and development, a move known as 'functional separation', as has already occurred in the UK, where Britain's former state-owned operator, BT (BT.L), has already been split up into its constituent parts to boost competition, in a move viewed as a model for the rest of Europe.

Germany and Spain, breeding grounds of incumbent giants Telefonica and Deutsche Telekom respectively, in particular did not favor this element.

The deal is a result of long-running informal talks between representatives of the commission, the European Parliament and the member states.

However, it must first be sanctioned by the EU Parliament, EU Commission and EU Council, in a round of meetings and a final decision which is expected to happen in May.

The executive also intends to hold a meeting on Thursday to discuss the inclusion of other elements like privacy and universal service in the reform.