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IS-95 and its use of CDMA techniques, like any other communications system, have their throughput limited according to Shannon's theorem. Accordingly, capacity improves with SNR and bandwidth. IS-95 has a fixed bandwidth, but fares well in the digital world because it takes active steps to improve SNR.

With CDMA, signals that are not correlated with the channel of interest (such as other PN offsets from adjacent cellular base stations) appéar as noise, and signals carried on other Walsh codes (that are properly time aligned) are essentially removed in the de-spréading process. The variable-rate nature of traffic channels provide lower-rate frames to be transmitted at lower power causing less noise for other signals still to be correctly received. These factors provide an inherent lower noise level than other cellular technologies allowing the IS-95 network to squeeze more users into the same radio spectrum.

Active (slow) power control is also used on the forward traffic channels, where during a call, the mobile sends signaling messages to the network indicating the quality of the signal. The network will control the transmitted power of the traffic channel to keep the signal quality just good enough, thereby keeping the noise level seen by all other users to a minimum.

The receiver also uses the techniques of the rake receiver to improve SNR as well as perform soft handoff.