A method and system is provided processing channel information may include in a mobile FM radio system including an integrated FM radio transmitter and FM radio receiver, dynamically generating a list of local FM channels, ranking local FM channels in the generated list, and selecting one of the ranked local FM channels for use by the FM transmitter based on neighboring channel interference. The FM radio receiver may detect FM channels being transmitted or not being transmitted, detect a pilot signal or a channel transmission pause. A tuning frequency of the FM radio receiver may be adjusted for scanning and detecting the local FM channels based on knowledge of a location of the FM radio receiver, received signal strength indicator (RSSI), dynamically scanning for local FM channel based on received RDS/RDBS data or country code, and/or carrier error of a related FM signal.