A Maryland company called iBiquity has developed a technology that will allow AM and FM stations to switch to digital broadcasts.

Why should we care?

Sound quality is the biggest reason, iBiquity says. Digital AM radio will sound more like FM, and music broadcast on digital FM will sound more like a CD, the company says. That's why they're calling it HD (high-definition) Radio.

Subscribers to the XM and Sirius satellite radio services already can hear clean, static-free broadcasts of music, news and talk shows. XM and Sirius receivers are available in many new cars and in special aftermarket receivers. There are even a few satellite radio sets for home stereos and at least one satellite boombox.

Of course, satellite radio subscribers pay for that privilege. XM service costs $9.95 a month; Sirius $12.95.

The good news about HD Radio is that you won't have to pay a monthly fee when you're listening to local stations.

The bad news is you're going to need a new radio.

Radio stations and the companies that own them are eager to make the switch. Viacom, Infinity Broadcasting and Clear Channel, three companies that own the bulk of U.S. radio stations, have all announced support for the service. Gannett, owner of USA TODAY, is also an investor in iBiquity.

IBiquity said at the Consumer Electronics Show in January that it expects to have as many as 300 stations using digital transmitters by the end of the year. The first digital broadcasters will go on the air early this year in New York, Los Angeles, Chicago, San Francisco, Dallas and Philadelphia.

Kenwood, Alpine and Jensen have said they will have HD car receivers on the market sometime this year. Sanyo and JVC plan to release units next year or in 2005. Visteon and Delphi, which make radios for Ford and other car companies, also are supporting iBiquity. And Harman Kardon said it will offer an HD-equipped home receiver this fall for about $2,000.

Manufacturers say the new car receivers initially will add as much as $150 to the price of a radio, but the price should drop over time.

Ric Manning writes for The (Louisville) Courier-Journal.