The new network will see up to 21 US-style local TV stations in areas including Belfast, Edinburgh, Cardiff and London.
The service will be available to all terrestrial viewers and may also be offered on satellite, cable and online.
Ofcom said it will decide on successful applicants this autumn, with the new channels expected to launch next year.
Licences will be awarded based on a set of criteria including the provision of local news and current affairs, programme proposals, launch date and commercial viability.
The 21 areas Ofcom have selected for local TV are: Belfast, Birmingham, Brighton & Hove, Bristol, Cardiff, Edinburgh, Glasgow, Grimsby, Leeds, Liverpool and London.
Manchester, Newcastle, Norwich, Nottingham, Oxford, Plymouth, Preston, Sheffield, Southampton and Swansea will also benefit from the service.
The areas were selected for having sufficient levels of interest from potential operators and being technically capable of receiving a local TV service.
The BBC Trust also published the final details of its funding contribution for the network.
As part of the current licence fee settlement, the BBC agreed to contribute up to Â£25 million for the successful bidder to build the network.
"I hope to see some really exciting bids for new local TV channels," UK Culture Secretary Jeremy Hunt said.
"Local TV will not only create jobs but it will also provide communities with news and content that is relevant to their daily lives."

A court heard Aidan Chaves, 26, reacted angrily to taunts from fans and was spat on during a home game for Sawbridgeworth Town FC on 25 March.
But he denied screaming threats at Clacton supporters on the touchline at the Hertfordshire club.
Stevenage Magistrates Court adjourned the case for a later hearing to decide if he had made threatening comments.
The three magistrates were told that Chaves faced derogatory remarks from the fans of the opposing team, including songs about his skill as a player, his tattoos and his mother.
One fan is said to have spat on him as he prepared for a throw in.
The court heard Chaves ran from to the changing room and emerged carrying a broken corkscrew.
Prosecutor Prosecutor Rufia Khatun said that, holding it aloft and running towards the Clapton fans, he allegedly screamed "Come here. I'm going to cut your throat."
Chaves - who gave his address as Mount Mellick Road, Portlaoise in the Irish Republic - pleaded guilty to a charge of having an offensive weapon in a public place.
The court was told he entered the plea on the basis that he had not uttered the threats that had been referred to by the prosecution.
In a statement he said he had grabbed the corkscrew to "ward the fans off".
Magistrates adjourned the case so that another hearing can take place on 10 August to decide if he had made the threats as claimed by the prosecution.
Chaves was granted unconditional bail.
Media regulator Ofcom has opened up bidding for operators to set up their own local TV services across the UK.
[NEXT_CONCEPT]
A footballer accused of threatening fans with a corkscrew has admitted possession of an offensive weapon.