The BBC's Torin Douglas: "Many homes don't want satellite dishes and can't get cable"

The long awaited figures were stronger than expected, and suggest that digital television is proving popular with UK consumers.

However, ONdigital's numbers fell short of the number of digital customers BSkyB, Rupert Murdoch's satellite broadcaster, has attracted.

ONdigital is in a head-to-head battle with BSkyB to sign up people to the new digital services, which have lead to an explosion in the number of channels available to UK viewers.

The BBC's Torin Douglas: There are half a million digital subscribers in the UK

Digital television is also likely to herald a range of new interactive services, including Internet access via the television screen, in the next few years.

ONdigital said the number of people signing up to its new service was increasing every month.

It signed up 30,000 subscribers in March alone to bring its total to 110,000.

That compares with a total of more than 350,000 BSkyB digital subscribers, although many of these have migrated from the group's existing satellite services.

BSkyB has set a target of signing up one million digital subscribers by October. Meanwhile ONDigital believes it can capture two million users within five years.

Shares soar

ONdigital is jointly owned by media groups Carlton Communications and Granada which own a large part of the ITV television network.

The strong subscriber numbers pushed shares in the two ITV companies sharply higher in early trading on the London stock market.

By 0955 local time (0855 GMT) shares in Carlton Communications had risen 18p to 632p, while Granada shares were up 44p to 1350p.

In a separate move ONdigital has also stepped up its war with BSkyB by unveiling plans to introduce a new cut price digital television.

ONdigital plans to sell integrated digital TV sets from around £500 ($800) this year.

Currently, integrated digital TV sets can cost up to £1,200.

The integrated TV sets eliminate the need for set-top digital decoders which currently cost about £200.

ONdigital has teamed up with electronics maker Alba to sell 100,000 of the televisions under the Bush brand.

Cheaper television sets could kick-start a surge in the number of digital subscribers.