A signal processing system is described for a bilateral hearing implant system having left side and right side hearing implants. An interaural coherence analysis module receives input signals from each hearing implant including sensing microphone signals and band pass signals, and analyzes the input signals to produce an interaural coherence signal output characterizing reverberation-related similarity of the input signals. A pulse timing and coding module for each hearing implant then processes the band pass signals to develop stimulation timing signals, wherein for one or more selected band pass signals, wherein the processing includes using an envelope gating function developed from the interaural coherence signal.
