A simple cochlear implant is provided that can be implanted in a doctor's office under local anesthesia, which does not destroy residual hearing, and in a preferred embodiment, which is small enough to fit within a person's ear canal. The cochlear ear implant includes an exterior ear module, an interior ear module, and a cochlear electrode array. The exterior ear module includes a hollow housing within which are located the active electrical components including a microphone, power supply, and processor. The exterior ear module is easily removable from the body without surgery and is positioned in the auditory canal, the concha bowl or behind the pinna. The interior ear module is a semi-permanent assembly located immediately exterior to the tympanic membrane. It is a simple passive module for relaying signals to the electrode array. The communication of auditory signals from the exterior ear module to the interior ear module may be achieved by various techniques including by direct electrical transmission. However, the communication between the exterior and interior ear modules is preferably accomplished using a transcanal induction link. The electrode array extends from the interior ear module through the tympanic membrane to engage the cochlea. The electrode array includes an implanted active electrode, a return electrode, and a biocompatible miniature connector for connecting to the interior ear module.