Web Hosting Dilemma

Recently, i have a lunch with a friend who is a web hosting provider. He told me that the web hosting busiess is extremely competitive nowadays. It is because there are many web hosting providers offer high hosting space with low price. He showed me an advertisement from a local provider : 3GB space, 15 GB bandwidth with only RM 180 per year.

I asked him, "can this provider survive or earn profit with such low price ? "

He told me, " Well, I don't know, but for myself, if I offer more than 500 MB for RM 180 per year, i actually making lost -- if the client fully utilize the 500 MB and the 15 GB bandwidth"

It means many web hosting provider are playing a dangerous game - Offer huge space, low price , but at the same time "expect" the client will not utilize full space.

It this circumstance, can you expect good servces from the hosting provider that offer with such low price ? It is also a potential risk that suddenly the hosting users upload huge files and utilized fully space and bandwidth which may cause the server overload. Meanwhile, it is also easy for the competitors to pretent as a client to sabotage the hosting provider, by sign up the 3GB space, fully utilize the bandwidth and space with only RM 180.00 (USD 50) , What a low cost to saborage a competitor !!

So, Web hosting provider, you want to fight for price and space, or fight for service and quality ?