At home I have a 20Mbps connection which isn't ideal as I can squeeze off a few bullets and most don't even register, On my lunch break in work however I play on my little LAN PC that I keep in work, We have a Gigabit connection and it works ok but even with a 1000Mbps line I get disconnections, Latency issues etc... which makes PvP a true chore.
Bungie need to have maintained dedicated servers for PvP with high bandwidth connections in several locations in each region, I'm hoping with the move to Steam we may get more stable connections due to Steam having servers in A LOT more locations than Bungie currently has.
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First off, steam has no region lock, unlike battlenet. So it's gonna get far worse. Secondly, the 3 bungie servers that connect to every game, can be based anywhere, makes no difference, they just hold ammo timers, scores, your profile, and security checks.