BRUSSELS—The European Commission has promised free Wi-Fi in every town, village, and city in the European Union, in the next four years.

A new grant, with a total budget of €120 million, will allow public authorities to purchase state-of-the art equipment, for example a local wireless access point. If approved by the the European Parliament and national ministers the cash could be available before the end of next year.

The commission has also set a target for all European households to have access to download speeds of at least 100Mbps by 2025, and has redefined Internet access as a so-called universal service, while removing obligations for old universal services such as payphones.