In his first major speech on media policy, Hunt said that Ofcom will evaluate the potential impact of relaxing the rules preventing companies from owning more than one media outlet in a single area.
The government believes that easing cross-media ownership regulation in the UK could encourage more investment in local and city-based TV networks.
Hunt also confirmed that Lazard's head of UK investment banking Nick Schott will handle an "independent commercial assessment" of local television in the summer.
In his review, Schott will "look at the potential for commercially viable local television stations within the local media landscape right across the nations and regions of the UK".
He will also consider how a new regulatory environment could "help nurture a new generation of hungry, ambitious and profitable local media companies".
Once both reviews have been completed, the Department of Culture, Media and Sport will publish a "local media action plan" in the autumn.
In the speech, Hunt made reference to the decline of TV station Channel M in Greater Manchester, which went through major cuts to its staff and programming earlier in the year.
"In an age of localism we have virtually no local TV stations in our major cities, and Channel M in Manchester - one of the very few - has recently been forced to shed most of its employees," said Hunt.
Later, he added: "New York has six local TV stations - compared to London which has not one. Birmingham, Alabama, an example some of you may have heard me use before, has eight local TV stations, despite being a quarter the size of our Birmingham that, again, doesn't even have one.
"Paris, Lyon and Marseilles have local TV. Why not Glasgow, Sheffield and Bristol? Unfortunately even as politicians have paid lip service to localism, our broadcasting ecology has pursued the polar opposite model - with a large proportion of news beamed shamelessly from the centre."
Hunt's approach to local media seemingly signals the death knell for Labour's independently funded news consortia scheme, which aimed to provide an alternative to ITV's regional news output.
In his speech, Hunt described the scheme, which was due to go into pilot phase in England, Scotland and Wales around now, as being "misguided".
The new culture secretary also confirmed plans to bring high-speed broadband to underserved rural areas, with three "market testing" pilot schemes to be launched soon.
No further details were supplied about what the pilots will entail, but they will be financed by surplus cash from the BBC-administrated digital switchover help scheme.
"We are now ranked 33rd in the world when it comes to broadband speed, with an average that is nearly five times slower than South Korea," said Hunt.
"Within this parliament we want Britain to have the best superfast broadband network in Europe."