A multichannel stimulation system includes a plurality of implantable microminiature stimulators (microstimulators), each being connected to a respective implanted electrode or electrode array. Each microstimulator is selectively operable as controlled by an external (non-implanted) control unit. The electrode or electrode array is implanted so as to contact nerves and/or tissue that is to be stimulated. Operating power is inductively coupled from the control unit to the microstimulators. An information signal is also coupled to the microstimulators to control which of the microstimulators is to be activated to provide a stimulation pulse to its respective electrode. In one embodiment, the invention provides a cochlear prosthesis with an intracochlear electrode array being implanted within the human cochlea, and with selected electrodes of the array being connected to individual ones of the plurality of microstimulators. The control unit of such cochlear prosthesis includes a small external transmitter coil that is worn next to the skin where the microstimulators are implanted. The control unit generates a power signal and an information signal for powering and controlling the cochlear prosthesis.