Advantages of FM:
1. Large decrease in noise. This leads to an increase in signal-noise ratio.
2. The operating range is quite large.
3. The transmission efficiency is very high as all the transmitted power is useful.
4. FM bandwidth covers the entire frequency range which humans can hear. Due to this, FM radio has better quality compared to AM radio.
Limitations of FM:
1. FM requires a much wider channel.
2. FM transmitters and receivers are more complex and costly.
3. In FM reception, less area is covered compared to AM.