The demise of ITV Digital does not mean the end of digital terrestrial TV in the UK, Culture Secretary Tessa Jowell insisted today.

Several "established and new industry players" were interested in applying for the DTT licences, which the Independent Television Commission was expected to re-advertise in an accelerated process lasting no more than six weeks, she said.

The collapse of the service - which supplies TV viewers with digital signals through their aerial - had not robbed Britain of its position as a "world leader" in digital technology, Ms Jowell insisted in a statement to the House of Commons.

Administrators Deloitte Touche yesterday announced that they were preparing a sell-off of ITV Digital and its assets at any cost after running out of cash to commit to a long-term sale.

Co-owners Granada and Carlton said they could not agree terms to pump further funds into the stricken venture, which has 1.2 million subscribers.

The announcement was a major blow to the Government's plan to convert all of Britain's television broadcasts to digital by 2010.