Do CDMA phones use signaling like GSM phones do?
They mean the paging channel (PCH), and yes, both systems use one (or more than one, in the case of CDMA 1xRTT voice + EVDO data networks).
The PCH delivers pages (rings - think "pager") to all phones within a multi-cell paging area. The pages could mean incoming voice calls, data comms, or texts.
To conserve battery, an idling phone only listens to the PCH every 2-5 seconds, during an assigned paging channel timeslot. If it hears a page for itself, the phone comes alive and instantly replies to the tower, which assigns the phone its own transfer channel to use until it goes back to sleep.
There can be a PCH overload situation if too many pages come at one time. Everything backs up, and soon the system is waiting for replies, and any further rings or texts or data ... to anyone in the paging area... are impossible.
(Under normal circumstances, paging channel overload should only happen during deliberate denial of service attacks... or temporarily with incoming flash crowd calls within a paging area. There are also various patented methods of preventing it that networks can employ.)
A source—who requested we not reveal his identity—told Ars that the problem isn't the cell radio hardware, nor the network infrustructure, but an issue with the way that the iPhone OS conserves power. All iPhone apps, including Phone.app, cause the radio to switch from "active" to "idle" mode when accessing the network far more often than traditional phones do.
This causes the signaling channel, responsible for such functions as SMS messaging, initiating, maintaining, or ending a phone call, voicemail notifications, and DHCP requests, to become overloaded.
What the Arstechnica source seems to be saying, is that the iPhone goes into power saving idle mode
too often. Therefore if the iPhone is waiting for data or push notifications to dribble in, the phone has to be woken up more often... which requires an extra incoming data wakeup page. So supposedly lots of iPhones in a cell paging area can cause a PCH overload.
That's the gist of it. I hope I made it understandable. Now whether it's true or not, I don't know. If it is true, then networks could and should make adjustments for it... or do better testing and not certify the phone until its behavior is changed.