Maybe depends on where you are? iHeart radio works great, and has every local station that I listen to. Have you tried it?Tunein radio doesn't work worth a damn for me, it takes it a nearly a minute to start streaming and then it will cut off every few minutes; at first i thought it was the phone but nokia music 3g playback is flawless. So to those who said before that FM wasn't needed...IT IS...cos even when you have unlimitted data online radio is garbage.
My last two phones (Android - HTC Droid, WP7 - HTC Trophy) both had FM radio tuner capability. And iHeartRadio is working perfectly fine on my HTC 8x currently. Just sayin...Honestly I dont know of a single smartphone that supports built in over the air radio. I wonder why? Guessing might be because the whole point of a smart phone is to use it with a data plan, and with a data plan there's no competing against digital radio, or local radio stations delivered digitally (via iHeartRadio.. though they pulled it from WP8 for some reason!).
Is TuneIn Radio available again on the Windows Phone 8 Store? I heard they pulled it out to "update" it (read: remove the function to listen to FM radio).
And as far as I know, no WP8 available today have the hardware for over-the-air FM radio.