Phasor Measurement Unit (PMU) based inter-area oscillation control is investigated in this paper. A ThyristorControlled Series Capacitor (TCSC) damping controller is chosen as an example to investigate inter-area oscillation control. Communication delay is one of the key challenges of wide area control performance. The question on how to evaluate the effect of time delay was raised in this paper. By the proposed time delay modeling technique using coprime factorization, the impact of time delay can be accurately estimated accurately. Based on the time delay uncertainty model, an H∞ controller is designed. The maximum time delay allowed is also investigated. Timedomain simulations of the two-area four-machine test system demonstrate the effectiveness of the controller and verify the estimated maximum time delay tolerance.