The National Association of Broadcasters' effort to "free radio" on smartphones is having an impact on the marketplace. AT&T plans to start selling phones with an activated FM chip in 2016. NextRadio, which makes a free app for tuning in local FM radio stations, made the announcement Tuesday.

The radio and the app would work on devices using the Android operating system, about three-fourths of the smartphone market, according to statistics from International Data Corporation. AT&T has requested that manufacturers activate the FM chip in new Android phones.

"With this decision, AT&T's customers become the biggest beneficiaries, giving them access to local radio news, entertainment, weather, and fail-safe emergency alert connectivity," NAB CEO Gordon Smith said in a news release. "With access to apps like NextRadio, AT&T's listeners will also enjoy song tagging and interactivity features that have become increasingly popular with younger listeners."

Nearly all smartphones have the ability to tune in FM radio stations, but this technology is deactivated in most phones sold by U.S. wireless carriers. Instead, consumers use their phones' data plans or wireless networks to stream music and programs.

NAB pursued multiple strategies to help its radio members reach listeners via mobile phones. NAB Labs funded the development of programming that enables apps—such as NextRadio—to access and use the FM chips in smartphones. Sprint began offering FM-enabled phones in 2013, but it has half as many customers as market dominators AT&T or Verizon.

NAB and NextRadio collaborated with National Public Radio and American Public Media to launch the "Free Radio on My Phone" campaign earlier this year—urging consumers to contact their carriers and demand FM access.

"It was an industry decision that Gordon Smith and I, and a number of other people made, to either file an anti-trust suit, get a mandate in Congress, or make a business deal," said Jeff Smulyan, president of Emmis Communications Corp., in a story posted by Radio Ink magazine. Emmis owns and operates 23 radio stations and developed the NextRadio app.

"The people who brought Wi-Fi into this country said make a business deal with a smaller carrier and prove the concept. Then when we hit critical mass—about 2 1/2 million downloads—we would take the message to the industry and ask everyone to tell their listeners that all smartphones have an FM chip and they should contact their carrier to get it activated," Smulyan said. "Within 45 days of that message AT&T came to us and said let's make a deal. The most important thing about this is if the industry tells listeners, we will be everywhere. We always felt that one big carrier was the tipping point and that's where we are now."

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