As per the news reported by BS there is a possibility of tata sky and dish tv posting loss of 1400 crores. The reason shown is subsidised set top boxes. If together they were putting this amount for R & D and manufacturing they could have manufactured a "Made in India" Set top box.
Once reliance come out with MPEG4 format existing players will force to reduce the price again else they may become extinct.
It is usual that a customer will always go for better quality and clarity in case of DTH. Tatasky and dish tv face real pain when they are forced to upgrade their existing set top box to retain customers.