The culture secretary has backed a decision to hand the TV licences of collapsed broadcaster ITV Digital to a consortium including the BBC and BSkyB.

The Independent Television Commission, which announced the move, said it hoped the decision would attract viewers back to digital television.

The collapse of ITV Digital left government plans to switch from analogue to digital broadcasting before 2010 in doubt, shaking consumer confidence in the viability of the new broadcasting medium.

ITC chairman Sir Robin Biggam said the application by the BBC, BSkyB and transmitter company Crown Castle offered the best future for terrestrial digital television.

"The commission believes that the BBC-Crown Castle application is the most likely to ensure the viability of digital terrestrial television," he said.

"It will target those viewers who have not been so far attracted by digital TV and will help facilitate the move towards digital switchover."

The 12-year licence period will make 27 digital free-to-view channels available via a set-top box costing about £100. The BBC has forecast that its proposal will attract five million homes in five to six years.

Culture secretary Tessa Jowell said she was pleased that a replacement for ITV Digital had been found.

"Digital television can bring huge benefits. It is without doubt the future for broadcasting," she said.

"I want as many people as possible to be able to get digital television in their homes, so I wish the BBC and Crown Castle the best of luck in making a success of these licences.

"I hope they can succeed where ITV Digital tried and failed."

The director general of the BBC, Greg Dyke, said the decision was a "fresh start" for terrestrial digital broadcasting.

"The platform has been through a major crisis but we believe that a simple, entirely free-to-view digital option has the best chance of success with consumers," he said.