The South Wales coverage area includes Cardiff and Swansea. Existing services include Real Radio Wales, owned by Guardian Media Group, and Kiss 101, owned by Emap, and smaller footprint services including The Wave in Swansea, owned by UTV.
Applications are required to be in by 3pm on December 12.
Ofcom said it is considering advertising one or two new FM commercial licences for most of North and Mid Wales, subject to gaining international agreement for the use of the required frequencies.
It is inviting views on whether it should issue one or two licences, and is also seeking non-binding expressions of interest in such licences from potential applicants.
It has no plans to advertise any other FM local commercial radio licences for the time being in the UK.
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