The local video service would expand upon existing BBC local websites on and focus on 60 areas, typically a county or conurbation, across the UK.
It would feature bespoke local video news, sport and weather in addition to the existing content.
In Wales, the BBC proposes to offer the service in both the Welsh and English languages.
The market impact assessment of the proposed service will examine its likely impact on similar and related products and services, "examining in particular the extent to which the service might affect innovation and investment in the commercial sector".
In particular, will consider the impact upon local newspapers and associated online services, local radio stations and associated online services, local and regional TV services and associated online services, mobile TV services and other online services.
The results of the market impact assessment will be published alongside the BBC Trust's Public Value Assessment on November 18.
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