New Zealand-based telecom operator TelstraClear, a unit of Australian carrier Telstra, is planning to spend some NZ$50 million ($31 million) to develop its 3G network, a Dow Jones report said.
The Dow Jones report said the company would begin building a 3G mobile network in the provincial town of Tauranga on New Zealand's North Island early next year, with plans to roll out a national network.
Tauranga's 100,000 residents would be offered a combined mobile and broadband package, allowing them to scrap their fixed-line connections and pay standard call rates from 3G mobile phones, the Dow Jones report said.
The report added that the move was an about-turn after TelstraClear last year abandoned plans to roll out a national mobile network.
The Dow Jones report also quoted TelstraClear CEO Allan Freeth in a statement as saying that the company had been emboldened by recent government moves to regulate the sector and stimulate competition.
The Tauranga deal pitted TelstraClear against the incumbent mobile operator, Vodafone subsidiary Vodafone New Zealand, which was gearing up to offer bundled mobile and broadband services from next year, the Dow Jones report further said.