It would be different from place to place. In Bangalore you get a milky thick tea while in my coastal town its more watery liquid. Not a liker of masala tea, don't think its too common down south.
It is worth mentioning that coffee is much more popular than tea in Bangalore (and other cities of southern Karnataka) in most middle class joints. However on the streets, tea still rules. Probably because cheaply made tea is more palatable than cheaply made coffee.
No, you can get tea flavored with spices (added while making the tea, not during production of the tea leaf), in the south too. Ginger and cardamom are more common though, IME. See my other reply.