One of the biggest battles for a planned local radio licence in the UK will take place in coming months, as the Government officially invites bidders for a lucrative Edinburgh station.

The FM licence is expected to be hotly contested by all the major players in the British radio market, and will be the first major bidding war for radio licences for the new media regulator, Ofcom.

Initial estimates suggest the number of potential listeners aged 15+ in the Edinburgh and Firth of Forth area to be just under one million. The area and population spread is similar to that of existing station, Forth One, owned by Scottish Radio Holdings.

Meanwhile, Ofcom has also advertised an FM licence, covering the Blackburn area and suburbs of Darwen, Accrington, Clayton-le-Moors and Great Harwood. The station will have a potential audience of around 150 000. Ofcom will close bids at the end of September.