APPLICATIONS are being sought from firms wanting to run a commercial radio station in the North-East.

The new communications regulator Ofcom, which took over from the Radio Authority, yesterday began advertising for the new local FM licence for Durham City and the surrounding area.

Ofcom estimates it could reach about 160,000 people.

The exact broadcast area will be determined by the location of the transmitter and other technical issues.

So far, two contenders have announced they will bid, both of which have made two temporary broadcasts.

Durham FM is part of The Local Radio Company, which also operates Sunderland's Sun FM and Darlington's Alpha 103.2.

Durham Local Radio is a consortium that includes Newsquest North-East, publisher of The Northern Echo and The Advertiser series.

An Ofcom spokesman said the licence would be for 12 years and applicants would have to pay £1,500 to bid.

The deadline for applications is 5pm on Thursday January 6.

Details of the licence, including the guidelines and procedures for the submission of applications, are available on Ofcom website http://www.ofcom.org.uk/licensing_numbering/radio_sound_broadcasting/commercial_radio/advts/durham/