Provided the proposal receives formal approval from the European Parliament and EU Council of Ministers, the measures should be in place by the end of the year.
"Radio spectrum is a crucial economic resource which must be properly managed across Europe to unlock the potential of our telecoms sector," said EU Telecoms Commissioner Viviane Reding.
"This proposal ... will increase competition in the use of spectrum bands and enhance accessibility of European citizens to multimedia services."
The Commission's plans do not mean the end of GSM. The proposal will allow new services to coexist with GSM in the 900MHz and 1800MHz frequencies.
The proposals are part of a wholesale reform of the EU Telecom Rules aiming to promote more flexible use of spectrum.
They are also in keeping with the Barroso's Commission drive for better regulation, and were prepared after consulting national radio spectrum experts and based on technical studies by Europe's association of spectrum and telecom authorities.
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