An improved arbitration scheme for allowing concurrent stimulation and telemetry listening in a microstimulator is disclosed. A listening window for telemetry is permitted to proceed, and access to the microstimulator's coil granted, during at least a portion of the inter-pulse period that follows the issuance of a stimulation pulse. This is permissible because access to the coil is not needed during the entirety of the inter-pulse period. For example, the listening window can issue during that portion of the inter-pulse period when the decoupling capacitor is discharged, but cannot issue during that portion of the inter-pulse period when the compliance voltage is being generated for the next stimulation pulse. However, because compliance voltage generation occupies only a small portion of the inter-pulse period, the technique is not substantially limited. By allowing the listening window to issue during the majority of the inter-pulse period, the listening window produces smaller gaps between the pulses, and stimulation therapy is thus brought closer to its ideal.