An FM broadcast transmitter transmits a broadcast signal having a carrier at a broadcast frequency and sidebands, able to be transmitted at full power, within a transmission bandwidth around the carrier. It includes a source of a modulated FM stereo signal having a carrier at the broadcast frequency and having sidebands with a bandwidth less than the transmission bandwidth representing a stereo signal. It also includes a source of a modulated in-band-on-channel (IBOC) signal, having carrier pulses spaced relative to each other to represent the IBOC digital data signal encoded as a variable pulse width encoded signal, and a bandwidth within the transmission bandwidth not overlapping the FM stereo signal sidebands. A signal combiner combines the modulated FM stereo signal and the modulated IBOC signal to form the broadcast signal.