The spectral maxima sound processor (SMSP), recently developed at the University of Melbourne, has been shown to provide improved speech discrimination in quiet and in noise for subjects using the Mini System 22 cochlear implant when compared with commercially available speech processors, including the Mini Speech Processor (MSP) [C. M. McKay and H. J. McDermott, J. Acoust. Soc. Am. 89, 1959 (1991)]. The ability of five subjects to perceive phoneme features using the SMSP has been compared with their ability using the MSP. Information transfer analysis has been applied to the results of open-set CNC word tests and closed-set vowel and consonant recognition tests. Phoneme features studied were consonant manner and place of articulation and voicing, vowel duration, formant frequencies, and formant transitions. The results show an overall improvement in the perception of all phoneme features, with large improvements seen in perception of consonant place of articulation. This consonant feature has been perceived poorly relative to other consonant features with all previous speech processors used with this implant. Further development of the SMSP is being guided by the results of this analysis.