FM Stereo and AM Stereo: Government Standard-Setting vs. the Marketplace.

The emergence of frequency modulation or FM radio signals, which arose from the desire to free broadcasting of static noise common to amplitude modulation or AM, has produced the controversial development of stereo broadcasting. The resulting enhancement of sound quality helped FM pass AM in audience shares in less than two decades. The basic groundwork for FM stereo was laid in 1955 when the Federal Communications Commission (FCC) allowed FM multiplexing, where one transmitter sends out two simultaneous (and, possibly different) signals. By April 20, 1961, the FCC allowed FM stations to broadcast stereo with multiplex, creating considerable excitement in the broadcast industry. The decision to allow stereocasting for AM radio was much more problematic. The FCC, in 1982 (after years of debate) finally decided that, rather than pick a single standard to ensure rapid facilitation of stereo on AM stations, they would instead pass the decision process to the marketplace. The FCC sent the AM stereo decision to the marketplace out of confusion and desperation. The changing role of the Commission during deregulation of radio directly affected AM stereo, particularly since both proceedings were being dealt with by the FCC simultaneously. The result was that the FCC failed to set a standard. The major difference between the evolution of FM stereo and AM stereo was the changing policy of the FCC. The outcome made it clear that self-regulation of the airwaves is a difficult task. (Ninety-eight references are appended.) (MS)