The regulator has invited industry responses to a list of questions relating to the service, which will be published alongside the BBC Trust's Public Value Assessment on 18 November.
The local video service would expand upon existing BBC Local websites on BBC.co.uk and focus on 60 areas across the UK.
It would create bespoke local video news, sport and weather to complement the BBC's existing online provision. In Wales, the BBC proposes to offer the service in both Welsh and English languages.
The Ofcom investigation will examine the likely impact of the service proposed by the BBC on similar and related products and services, and the extent to which the service might affect investment in the commercial sector on local newspapers and TV services.
United Kingdom
Ofcom investigates BBC's local video service
LONDON - Ofcom has launched an investigation into the BBC's proposed local video service, which would create a range of new regional websites and online local news services.