HD Radio is a digital radio technology that exists alongside traditional analog radio broadcasts in the United States, Canada, and Mexico. The technology is used by both AM and FM stations and allows broadcasters to transmit original analog signals alongside additional digital content. The audio quality on an HD Radio is also improved compared to standard terrestrial systems.
How HD Radio Works
Although there is some confusion between satellite radio and HD radio, the two are different. HD radio is a supplement to existing terrestrial broadcasts. Satellite radio relies on a different technology and content stream and is only available by subscription.
Because HD Radio technology allows radio stations to continue broadcasting original analog signals, there is no need to update your radio hardware. Unlike the highly visible switch from analog television broadcasts to a digital standard, there are no plans to phase out analog radio broadcasts. This is largely because a shutdown of analog broadcasts does not reclaim bandwidth that could then be resold.
The HD Radio standard is based on technology owned by iBiquity. In 2002, the FCC approved iBiquity's HD Radio technology for use in the United States. HD Radio is the only FCC-approved digital radio technology.