Time delay in bilateral teleoperation systems seriously deteriorates the performance and possibly affects the stability. A novel time delay compensation method based on the concept of network disturbance (ND) and communication disturbance observer (CDOB) has been proposed and the validity has been verified by simulation and experimental results so far. However the validity of the time delay compensation method on performance has not been analyzed. This paper presents analysis of the validity of the time delay compensation method on performance. The analysis is discussed based on performance index of bilateral teleoperation systems, transparency. The analytical results are verified by simulation results.