It looks like Juha's Geekzone Blog (Techsploder) is causing some in the goverment to act:

As well as Telecom receiving copies of the Cabinet papers, some web logs also seemed to have got wind of the pending decision.

"Rumours from Wellington - and that's all what they are at the moment - say the New Zealand government is not just fed up with Telecom's slow progress when it comes to rolling out broadband in the country, but will actually do something about it next week," the Techsploder blog said last week

"Here's the dynamite though: the sources say local loop unbundling is on the table when Cunliffe's stocktake is presented to the cabinet.

"A structural separation of Telecom's retail and wholesale operations is also included, but little else is known.

"The local loop unbundling is apparently a firm decision, but the structural separation may be jettisoned if Telecom squeals too loudly."

Miss Clark's spokesman said the blog comments added to the need for an inquiry.