In Lithuania, Europe, I spend about $9 for this (even more, with 1GB of data). Very happy about the competition between carriers in our country - it is constantly making everything better and cheeper.
They don't. You pay for roaming. However, in summer 2014 there will be no more roaming charges for the EU (forced by the EU commission on the carriers - the carriers were playing dirty all along, e.g. TMobile and Vodafone have companies in many EU countries, but customers still pay roaming charges in "different" networks provided by different subcompanies). This still won't mean free mobile for the whole EU, as most networks only offer free calls/texts/data in their local networks, while you have to pay a little if you're in another operator's network (in the same country).