The effect of cellular heterogeneity on the coding properties of neural populations is studied analytically and numerically. We find that heterogeneity decreases the threshold for synchronization, and its strength is nonlinearly related to the network mean firing rate. In addition, conditions are shown under which heterogeneity optimizes network information transmission for either temporal or rate coding, with high input frequencies leading to different effects for each coding strategy. The results are shown to be robust for more realistic conditions.