It’s interesting that we’re only now having the debate over whether or not FM radio in cell phones is a good idea, at least on a widespread forum, considering Nokia and others have equipped this feature for 5-6 years now.  The fact is, it’s not a good idea—it’s a GREAT idea.  Here’s why:

1 – The ratings for terrestrial FM radio still dwarf that of satellite stations, when you look at the local cumes, so while a Sat channel may have 650k listeners at a time, they may only have 15k in a particular local market.  Good for national advertisers; bad for community ones.  For this singular reason, FM isn’t going anywhere.

2 – It’s free to the listener, can be accomplished anonymously, and requires no subscription or membership.

3 – The digital terrestrial stream (ie. HD radio) is of excellent fidelity and provides a transport for digital (and even interactive) programming beyond what FM broadcasters are currently using, so there’s headroom below terrestrial’s technology ceiling.

4  – Terrestrial radio is more or less weatherproof. Sat radio isn’t.

Now, as to whether or not it should be mandatory–well that just sounds like a war between the recording lobby and the cell phone carriers.  I’m of the opinion that the FM broadcasters are generally in favor of it but hamstrung by the recording industry.