What if you could legislate for FM Radio to be in everyone’s phone?

In a rare alliance, the U.S. Record and Radio industries have banded together to lobby their government to force all manufacturers of smart phones and handheld music devices, such as BlackBerries and iPods, to include FM radio receivers in their products. If approved by congress, terrestrial free to air FM radio would be at the fingertips of anyone who carries one of these ubiquitous devices. Which, at the risk of tautology, means just about everyone, almost all of the time. The benefit for Radio is obvious.

The Record industry is publicly saying that they will also benefit from more Radio listening because Radio is still a major force in driving new music sales. But another reason that they are supporting Radio is that it is part of the deal for U.S. stations to start paying broadcast royalties for artists.

Unsurprisingly the manufacturers of mobile devices who care not a fig for record sales or radio ratings are less than enamored with the prospect of being hauled into this deal to benefit third parties.

Only in America? Why not Australia?

If the U.S. Radio and Record industries can push this through congress, Australia could get FM tuners in all handheld devices by default as it will be cheaper for manufacturers to include them for this relatively tiny market than exclude them.

And why FM? Why not digital?