Local markets are *always*more expensive (with the exception of the US).
As an example, in Australia the average cost of bandwidth is - 0.15 cents per Mb *Note that's megabyte, not gigabyte. I have in the past managed to negotiate that down when I worked for a local ISP as low as 11 cents/mb by buying in *huge* quantities, but that's the average.
Yes and no. I have to agree, the UK is more expensive the the US, in terms of hosting, but many hosting companies (us included) have servers based in the US to cut costs and bring the savings to the UK market.
I think in all fairness, there are many budget UK hosts that are cost effetive. Our main reason for having our servers based in the US was the bandwidth costs.
well, generally the colocation costs in the UK are high... and you won't find cheaper ded. servers than Rackspace.co.uk... bandwidth is in some cases cheaper than the US and you generally get a more personalised service - the London Telehouse is an example of this... the bandwidth is high quality(ntl, C&W, worldcom - no cogent ) and is fairly cheap... and they are a very big company - datacenters in the UK, France, Switzerland, Germany and now the USA...
UK hosting (I mean proper - as in servers located in the UK) seems to have an unrivaled system of support. You pay a lot more money but from what I see you get the very best. Okay, this is a general term but out of the serious contenders in the UK (no i don't mean that farcehosts poop) they all seem to be on par with rackspace's reputation in the US. Hence a lot of them working from word of mouth opposed to target advertising.