Ofcom received three applications for the licence, which has a limited frequency and so does not cover the entire 200,000 adult population of the Rotheram area.
Rother FM's winning bid described the station as providing high quality news and information and a popular and distinctive blend of music appealing to adults and children.
Lincs FM Group operates seven local stations across Yorkshire and the Midlands, and is among the bidders for the new Hull licence.
UTV, which owns TalkSport and 19 local stations in the UK, bid with Radio Rotherham, a similar format targeting 25- to 64-year-olds.
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