The balance of power between the Rudd government and Telstra in the bid to force the Telco's structural separation has delayed over the past couple of days, with the a clear possibility the government's bill to force this commercially devastating outcome will be defeated.

The pick-up reveals that some investors propelling that there might be improvement in Telstra's outlook. There are no certainties; however, it seems to better for Telstra than it did a couple of weeks ago.

On the grounds of the numbers yesterday the bill will face a defeat by one vote unless the government can grab a renegade National Party vote or two.

Also, it is revealed to be a loud call to post that if the legislation looses, Telstra is out of the woods. It won't be.

However, its bargaining position with the government will be highly improved.

It will permit Telstra to initiate negotiating talks with the government without a gun at its head threatening to cut off supply of new spectrum unless it accedes to being cut in two.