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As particleman said, it depends on the broadcaster, not the service provider.
I am using TATA SKY but dont have a widescreen LCD TV. I will ask one of my friends to check out and will post about it.
Any members who has a widescreen and digitcal cable or DTH connection can confirm
You don't need a widescreen display to test it. I don't have one either. Do you receive DWtv (http://www.deutsche-welle.com/)? I don't have Tata Sky (we have InDigital here in Mumbai) but in the set-top box configuration you can set the aspect ratio options (I have selected 4:3 letterbox). When you switch to DW, you see the full uncropped picture for a second before it re-adjusts and zooms out to the cropped image -- this is an indication that you're watching a true widescreen (and not letterboxed like BBC, etc.) channel. If you select 16:9 you'll see a horizontally compressed image.