The United States and Cuba have taken another step towards normalized relations after decades of a frozen relationship by re-establishing a direct telephone link for the first time in 15 years.

Etecsa, Cuba's state telecommunications company, released a statement on Wednesday announcing that calls can now be made directly from the United States to Cuba and vice versa, without going through a third country.

"The reestablishment of direct communications between the United States and Cuba contributes to providing better infrastructure and better communications quality between the people of both nations," said Etecsa, according to The Telegraph.

Since 1999, telephone calls between the two countries had to pass through a third country, which made the calls very expensive. Now, Americans and Cubans will be able to make direct calls to each country thanks to a connection that was set up through New Jersey-based telecommunication firm IDT Domestic Telecom.

"Ultimately, the agreement will make it easier and more affordable for our customers to call friends and family in Cuba," said IDT Domestic Telecom, reports BBC News.

Etecsa added that the link would initially only be for phone calls. However, this marks the first agreement signed by the two countries since President Obama announced last December that the two countries would renew diplomatic ties after more than 50 years of hostility.

The former Cold War foes are also working on opening embassies in each other's countries and exchanging prisoners. Cuba, however, has demanded the U.S. remove the country from its terrorism list. According to Cuba, U.S. sanctions on banks that do business with designed terrorist countries impedes it from conducting diplomatic affairs in the States.

Ideally, the U.S and Cuba would like to reach an agreement on reopening embassies before the Summit of the Americas in Panama on April 10-11, where U.S. President Barack Obama and Cuban President Raul Castro are scheduled to meet for the first time since announcing their joint agreement in December.