fm is analog transmission......its clearer than am only bcos of the power spectral density being larger....the noise being spread in all the β+1 side bands on both sides....it can be digitised but i dont know if its actually done....also bcos the power wasted in the carrier is much less compared to am.....
FM is analog, but in FSK (FSK is digital) , it has similarities to FM.
the difference in FSK: it onty uses 3 sets of frequency to be translated as rest, mark or space frequency. these frequencies represents the digital information signal as a 0 or 1 (in space and mark frequencies) and rest frequency represents the "off" state of the transmission (just to difference with the space frequency which represents 0).
im fm radio we receivr the analog signal...than digital processing is done on the signal in digital circuits.......than tha output is again in analog.....sidra_maheen84@yahoo.com