Bilateral cochlear implant (CI) listeners currently use stimulation strategies which encode interaural time differences (ITD) in the temporal envelope but which do not transmit ITD in the fine structure, due to the constant phase in the electric pulse train. To determine the utility of encoding ITD in the fine structure, ITD-based lateralization was investigated with four CI listeners and four normal hearing (NH) subjects listening to a simulation of electric stimulation. Lateralization discrimination was tested at different pulse rates for various combinations of independently controlled fine structure ITD and envelope ITD. Results for electric hearing show that the fine structure ITD had the strongest impact on lateralization at lower pulse rates, with significant effects for pulse rates up to 800 pulses per second. At higher pulse rates, lateralization discrimination depended solely on the envelope ITD. The data suggest that bilateral CI listeners benefit from transmitting fine structure ITD at lower pulse rates. However, there were strong interindividual differences: the better performing CI listeners performed comparably to the NH listeners.