The European Commission commenced an investigation into the proposal and EU regulators have previously criticised plans to raise termination rates.
The Commission issued a warning to Lithuania earlier this week, claiming that if it implemented the plans, call rates in the country would be higher than any other EU country.
Lithuania has now withdrawn its proposals, according to the EC, and the country will be required to submit an alternative plan in the coming months in line with EU law.
"The Commission is particularly concerned that, if the new plan is introduced, fixed call termination rates in Lithuania will remain at a much higher level compared to the other EU member states," a statement read.
Germany was the last country to be issued with a warning over the issue, and it has three months to change its proposals.
Neelie Kroes, the EC commissioner, has taken steps to reduce fixed and mobile rates, but operators in the continent claim that the fees are necessary for further investment in next-generation networks.
