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The Bahamas Telecommunications Company (BTC), controlled by Cable & Wireless Communications (C&WC), has removed "inter-island" additional charges for calls between the country's 29 islands, C&WC said in a statement.
While normal airtime charges still apply, mobile customers can now make calls to a fixed line or mobile in another island without incurring an additional US$0.18 per minute "long distance" charge.
BTC is the only mobile operator in the Bahamas. When C&WC acquired a 51% controlling stake in the former state monopoly in April, it was granted a three-year exclusivity period for mobile services until 2014.
C&WC has said it will invest to prepare BTC for competition by improving service and introducing new technology, including HSPA+, 8Mbps broadband and a focus on customer care.
"The removal of long distance charges for island-to-island cellular calls is one of the promises made as part of our commitment to improve customer service while reducing rates," BTC CEO Geoff Houston said.