A recent study found deaf children do not use phonological information during word reading.

For more information on this topic and full abstract look at:

http://jslhr.asha.org/cgi/content/abstract/53/4/801

Ormel, Ellen., Hermans, Daan., Knoors, Harry., Hendriks, Angelique., Verhoeven, Ludo. (2010). Phonological Activation During Visual Word Recognition in Deaf and Hearing Children. J Speech Lang Hear Res, 53: 801-820.