A hearing aid system including an implant (60) configured for insertion into a recess (40) formed under the skin of the retro-auricular space (50), which implant does not occlude the ear canal (30). The implant includes electronic circuitry (72), a transducer (65, e.g., speaker), antenna (64), and power source (66). The hearing aid also includes an external module (70), which module includes a microphone (163), electronics (172), antenna (164), and power source (166). A telemetry link (76) between the external module antenna and the implant antenna allows transmissions between the microphone module and the implant.