In e-commerce, doesn't latency == $$? Is the bandwidth premium really that much higher? Or is the performance difference between the geographies negligible?
This is true for places that have good conditions and internet. You have to remember, power outages are a daily occurrences in even built up places such as Bangalore, and internet connectivity isn't crash hot anyway. Latency of the website won't have as much of an impact in these conditions (IMO, anyway)