MUM and dad investors who copped a battering over Telstra stocks last year could be in for some relief.

The Government is tipped to rubber-stamp Telstra's $9 billion deal with NBNCo tomorrow, and analysts have tipped a rosy future for the company - at least in the short term.

Southern Cross Equities telco analyst Daniel Blair said the imminent NBN deal was a positive one.

"What the deal will do is remove some of the uncertainty about the stock for shareholders and the market," Mr Blair said.

"While we've been dealing with the notion of a Labor NBN for only three years, it's something that's been in the works for a lot longer than that."

Senior Telstra figures have also suggested that the Government will not let Telstra's 1.3 million shareholders suffer from their pending deal with the NBN.

One industry figure described the deal as "more of a political issue than a financial issue for the Government".

"They will not - nor can they afford to - allow shareholders to suffer any immediate adverse consequences from this deal."

While the present value of the deal with Telstra is expected to tip the $9 billion mark, some analysts have suggested the final figure will be closer to $23 billion.

"Of that, $4.5 billion is providing long-term lease access to infrastructure. Another $4.5 billion will be decommissioning the copper network so broadband cable customers can come across to fibre," Mr Blair said.

After wallowing around the $2.60 mark in mid-March, Telstra shares have rallied in recent months.

Shares closed up last week at $3.05, suggesting that investors had already begun re-rating the stock in expectation of the deal with NBNCo being finalised.

Telstra shares are the biggest market index earner in the ASX 200 this year.

Fat Prophets telco analyst Greg Fraser said that even if the deal was finalised tomorrow, there was a lot of water to go under the bridge.



"There are still regulatory procedures that need to be followed," he said.

Originally published as Telstra shareholders in for some joy