A new signal processing algorithm for improved pitch perception in cochlear implants is proposed. The algorithm realizes fundamental frequency (F0) coding by explicitly modulating the amplitude of the electrical stimulus. The proposed processing scheme is compared with the standard advanced combination encoder strategy in psychophysical music perception related tasks. Possible filter-bank and loudness cues between the strategies under study were minimized to predominantly focus on differences in temporal processing. The results demonstrate significant benefits provided by the new coding strategy for pitch ranking, melodic contour identification, and familiar melody identification.