There is a global trend towards the adoption of digital technology in radio and communications, especially for distribution and transmission. Digitalization offers many substantial advantages to national/ international broadcasters and infocasters. All India Radio has adopted Digital Radio Mondiale (DRM) technology for digitalization of its medium wave and short wave transmissions. In the FM band this technology is called DRM+, which uses the same audio coding, data services, multiplexing and signaling schemes as the established part of the DRM standard for short, medium and long wave up to 30 MHz, but operates in higher frequencies between 30 and 174 MHz. DRM+ trials have been successful. The DRM Consortium has completed the technical development of DRM+ and the technology enhancement to the DRM system specification is currently in the ETSI standardization process. DRM+ will offer CD quality surround sound.

All India Radio has planned to augment the present FM coverage, by installing a number of new DRM+ compatible transmitters in the 11th Plan. It shall allow AIR to smoothly switch over to DRM+ with digital CD surround sound at appropriate time. FM Radio enables a great degree of localization and hence brings along interactivity with a local flavour at relatively low broadcast costs. In 1999, the Government of India decided to allow e FM operators to operate 108 FM channels in 40 cities for commercial and entertainment purposes through a bidding process. The Government of India also allowed the IGNOU to start FM radio for educational purposes in 40 cities. The bidding generated lot of excitement and heat, but after the initial euphoria died out and a number of the bidders defaulted, there were only 21 operational Private FM stations left: Maharashtra (5), Delhi (3), West Bengal(4), Tamil Nadu(4), Karnataka(1), Gujarat (1), Uttar Pradesh(1), Madhya Pradesh(1), and Andhra Pradesh (1). Nonetheless, the Private FM scheme revolutionized the radio listening. Emboldened by the success of private FM stations, the Government of India launched Private FM Radio Phase II of the scheme. The Government had invited bids for 337 channels in 91 cities across the country under FM Phase II, out of which 245 channels got finally allocated for which letters of intent have been issued. Under FM phase-II, so far 54 channels are operational in 30 cities while 16 are about to take off. Radio which has a set-back a few decades ago, has been revived and re-vitalized by the FM revolution.

The leading private players have similar listenership profiles - a skew towards younger age groups. Almost all the private radio players have planned something or the other for youth and teens of the country. As all the stations are wooing the younger generation, they have more or less a similar programme content: mainly popular Indian and Western music, compered in a friendly, spontaneous and contemporary style and therefore highly popular with the urban youth. Interestingly, a research carried out by Development and Research Studies ( DRS ) has proved that listeners cannot really identify stations accurately. In 74 percent of the cases, listeners attributed their favourite radio programme to the incorrect FM station!

The main problem plaguing the Indian private FM industry is the mismatch of revenues to the high operating costs. In the face of such a revenue scenario, it is obvious why there is no experimentation with content - all the players are trying to cater to the biggest audience possible.

All India Radio has a rich depository of music and it operates 14 FM Stereo channels,

A composite news and entertainment channel called AIR FM II was launched on 1st September, 2001. The channel is on air for 18 hours a day, operational in Delhi, Mumbai, Kolkata and Chennai. AIR FM-II has been renamed as FM Gold. The programming is a blend of information and entertainment, with one third of its content devoted to news and current affairs. If one wants to listen to melodious songs, FM Gold is the right choice: it plays old Hindi music (usually of sixties, seventies and eighties). While the hourly news bulletins in Hindi and English originate from Delhi, the FM Gold Channels at the other three centres also broadcast news in respective regional languages. AIR FM Gold is positioned as a Classic Channel with golden oldies, ghazals and light classical music forming part of the entertainment segment.

Local Radio is comparatively a new concept of broadcasting in India. The local radio stations of AIR, majority of them having FM transmissions, serve a small area and are perhaps they are the only true mass media because they use the local language which is a plus point in a multi-lingual country like India. Local Radio Stations provide an opportunity to air locally-produced content that is immediately relevant to daily lives of the people. They allow individuals and community groups to participate in producing their own programs and nurture their local culture. Locally oriented programming, locally relevant news, information and music with clear and crisp FM signal, have made the local radio stations an indispensible part of the All India Radio's network.

All India Radio, a Public Service Broadcast Medium, has to keep its focus on public service programming. AIR's reach and network is far greater than other private channels. AIR FM Channels cover 24 percent of the area and 35 percent of the population, whereas private FM channels at present are covering just 3.3 percent of the area and 9.3 percent of the population. Even after the completion of Private FM Phase II, they will cover only 9.0 percent of the area and 21 percent of the population. Thus, there is and will be a huge gap between AIR FM and private FM channels in terms of coverage of area and population. Moreover, the private FMs are ‘City Centric' only; hence AIR is and will remain the only radio service available to rural and semi-urban areas.