Indeed, there is (or was) at least one other Nokia phone available in Greece that has a working FM transmitter. However, AFAIK it is indeed illegal to transmit in FM without acquiring a license first: Non registered radio stations that broadcast are considered illegal. Perhaps there are are some bands that are free but I'm not aware of any such FM band.

Here is a link that mentions a 100.000 euros fine for illegal broadcasting against "Style FM" Radio (in greek): http://www.radiofono.gr/node/1829

The restriction seems related to defense/military and health issues. Have a look here (also on greek): http://www.eett.gr/opencms/opencms/a...POF319-080.pdf

FWIW: I believe that this restriction is (somehow) common across all Europe and that the requirement of registration of radio broadcasts is a European law.