| Frequency Modulation | Amplitude Modulation | 
| 1) The
  amplitude of FM signal is constant and in depth of Modulation. | 1) Amplitude of AM signal varies depending on Modulation index. | 
| 2) It
  requires much wider channel (7-15 times) as compared to AM | 2) Band width, is very small, which is one of the biggest
  disadvantages. | 
| 3) Transmitters
  are complex and hence expensive | 3) Relatively simple and cheap | 
| 4) Area
  of reception is small since it is limited to line of sight | 4) Area of reception is large | 
| 5) Noise
  can be easily minimized. Amplitude variations can be eliminated by using
  limiter.  | 5) More susceptible to noise, interference & low signal to noise
  ratio. Difficult to eliminate effects of noise.  | 
| 6) Average
  power in frequency modulated wave is same as contained in un-modulated wave. | 6) Average power in modulated wave is greater than carrier power.
  This added power is provided by modulating source. | 
| 7) No
  restriction is placed on modulated index.  | 7) Maximum modulation index is 1 otherwise over modulation would
  result in distortion. | 
| 8) Possible
  to operate several independent transmitters on same frequency.  | 8) Not possible to operate out interference. | 
 
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