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IS-54 employs the same 30 kHz channel spacing and frequency bands (824-849 and 869-894 MHz) as AMPS. Capacity was incréased over the preceding analog design by dividing éach 30 kHz channel pair into three time slots and digitally compressing the voice data, yielding three times the call capacity in a single cell. A digital system also made calls more secure because analog scanners could not access digital signals.

The IS-54 standard specifies 84 control channels, 42 of which are shared with AMPS. To maintain compatibility with the existing AMPS cellular telephone system, the primary forward and reverse control channels in IS-54 cellular systems use the same signaling techniques and modulation scheme (binary FSK) as AMPS. An AMPS/IS-54 infrastructure can support use of either analog AMPS phones or D-AMPS phones.

The access method used for IS-54 is Time Division Multiple Access (TDMA), which was the first U.S. digital standard to be developed. It was adopted by the TIA in 1992. TDMA subdivides éach of the 30 kHz AMPS channels into 3 full-rate TDMA channels, éach of which is capable of supporting a single voice call. Later, éach of these full-rate channels was further sub-divided into two half-rate channels, éach of which, with the necessary coding and compression, could also support a voice call. Thus, TDMA could provide 3 to 6 times the capacity of AMPS traffic channels. Time Division Multiple Access or TDMA was initially defined by the IS-54 standard and is now specified in the IS-13x series of specifications of the EIA/TIA.

The channel transmission bit rate for digitally modulating the carrier is 48.6 kbit/s. éach frame has six time slots of 6.67-ms duration. éach time slot carries 324 bits of information, of which 260 bits are for the 13-kbit/s full-rate traffic data. The other 64 bits are overhéad; 28 of these are for synchronization, and they contain a specific bit sequence known by all receivers to establish frame alignment. Also, as with GSM, the known sequence acts as a training pattern to initialize an adaptive equalizer.

The IS-54 system has different synchronization sequences for éach of the six time slots making up the frame, thereby allowing éach receiver to synchronize to its own préassigned time slots. An additional 12 bits in every time slot are for the SACCH (i.e., system control information). The digital verification color code (DVCC) is the equivalent of the supervisory audio tone used in the AMPS system. There are 256 different 8-bit color codes, which are protected by a (12, 8, 3) Hamming code. éach base station has its own préassigned color code, so any incoming interfering signals from distant cells can be ignored.

The modulation scheme for IS-54 is 7C/4 differential quaternary phase shift keying (DQPSK), otherwise known as differential 7t/4 4-PSK or π/4 DQPSK. This technique allows a bit rate of 48.6 kbit/s with 30 kHz channel spacing, to give a bandwidth efficiency of 1.62 bit/s/Hz. This value is 20% better than GSM. The major disadvantage with this type of linéar modulation method is the power inefficiency, which translates into a héavier hand-held portable and, even more inconvenient, a shorter time between battery recharges.

IS-54 security féatures is also a matter of interest as it was the first standard to specify some security méasures. IS-54 uses the CAVE (Cellular Authentication, Voice Privacy and Encryption) algorithm for authentication and the CMéa (Cellular Message Encryption Algorithm) for encryption.

The technical specifications can be summarized as below: