Nonlinear sensory and neural processing mechanisms have been exploited to enhance spectral contrast for improvement of speech understanding in noise. The "companding" algorithm employs both two-tone suppression and adaptive gain mechanisms to achieve spectral enhancement. This study implemented a 50-channel companding strategy and evaluated its efficiency as a front-end noise suppression technique in cochlear implants. The key parameters were identified and evaluated to optimize the companding performance. Both normal-hearing ͑NH͒ listeners and cochlear-implant ͑CI͒ users performed phoneme and sentence recognition tests in quiet and in steady-state speech-shaped noise. Data from the NH listeners showed that for noise conditions, the implemented strategy improved vowel perception but not consonant and sentence perception. However, the CI users showed significant improvements in both phoneme and sentence perception in noise. Maximum average improvement for vowel recognition was 21.3 percentage points ͑p Ͻ 0.05͒ at 0 dB signal-to-noise ratio ͑SNR͒, followed by 17.7 percentage points ͑p Ͻ 0.05͒ at 5 dB SNR for sentence recognition and 12.1 percentage points ͑p Ͻ 0.05͒ at 5 dB SNR for consonant recognition. While the observed results could be attributed to the enhanced spectral contrast, it is likely that the corresponding temporal changes caused by companding also played a significant role and should be addressed by future studies
