From a business standpoint it may be good for both parties but for us it's bad news.
Airtel DTH is an economical and business minded brand while TS is the cutting edge high-end brand.
I think with the reduction in competition, in the long term, we will all be using low end pack with high-end tariff.
EDIT: It's possible that a merger can also be good for customers as cost of operation is reduced. In fact in Indian DTH industry such a merger was just waiting to happen.