The service will subsequently be extended to other areas, TelstraClear chief executive officer Dr Allan Freeth said in a statement issued this afternoon.
The network will use the High-Speed Downlink Packet Access (HSDPA) protocol, which allows speeds of up to 14.4Mbps to be delivered over 3G networks. Telstra is also implementing the protocol in its Australian 3G networks.
"The next step is to secure sites for wireless base stations, working with the Tauranga City Council and local community to ensure the service is up and running in a year's time," said the statement.
Freeth said the telco's NZ$50 million investment in a wireless network had been in development for "some time" but was aided by the Kiwi government's recent wide-ranging package of reforms in the country's telecommunication's sector.
"In addition to national network upgrades, our NZ$20 million South Island network build and the recent opening of a new national customer contact centre in Kapiti, it is clear we are investing in a strong future in New Zealand," said Freeth.
TelstraClear will deliver a bundled service called "Unplugged" over the infrastructure.
"We will be introducing proven technology that delivers phone calls, broadband, mobile and more," said Freeth, adding customers would be able to talk and use broadband "wherever you are", with the ability to retain their local phone numbers.
TelstraClear has an existing fibre optic network in Tauranga. The fast-growing city has around 107,000 residents.