The future of a $1 billion subsidy for the Optus-led Opel consortium is hanging in the balance after the Government left the door open to cancelling the project.

Communications minister Stephen Conroy is examining the Opel rural broadband consortium’s plan as he approaches a decision on whether to proceed with a $958 million government grant to Opel that he opposed while in opposition.

Opel won a controversial tender under the previous government to build a broadband open access network to service remote and rural areas in competition with Telstra.

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