Chips in CDMA
Chip in the context of CDMA is distinct from bit and refers to binary digits transmitted over the RF link. The chip rate in IS-95 is 1.2288 MHz (thus allowing adequate guard bands to permit the carriers to be spaced 1.25 MHz apart). Each bit is represented by many chips, and if a majority of the chips get through then the bit can be reconstructed properly. The number of chips representing each bit varies depending on the bit rate. When using an 8K Vocoder (such as EVRC) there are 128 chips for each bit. Chips as such don't contain data because both the sender and receiver know the spreading pattern used to create them from a bit, and as such are not directly subject to the laws of Information Theory. Though there are many phones simultaneously using a single frequency to transmit full chiprate, that means that the channel is not saturated unless the bitrate approaches the bandwidth of the carrier.