Sure, caching dynamic content is a waste of time, and YOUTUBE's handling of their continuously changing video URL's is bordering on criminal.
But consider the rest:
- VOIP : At least route local to local without going via international, the current situation means that an international VOIP provider can be cheaper than a local one for local -> local, a beeeeeeg fat buggerup.
- Web2 : The dynamic content should be around 2% of the traffic from that site. All pictures and layout and articles should be non dynamic. Web2 developers should be rewarded for making their web sites cache friendly, using security descriptors to hide secure content instead of dynamic foolery. A web-spreadsheet is not an article, and falls under the "online gaming" category.
- Online Gaming : Online gaming includes all services that require low latency, but not very high throughput. All online gaming should be routed through a single point and be routed appropriately. Where possible localizing the resource must be encouraged financially. This service is completely different from the browsing and mail and ftp and mass downloading services, and should be handled differently as it has completely different cost drivers. By segregating this service, abuse of the service by the "bulk downloaders" will be prevented, allowing for tighter control and guaranteed service levels.
- Existing Mirrors : To the average internet user, the local mirrors do not exist. When a new internet user joins their ISP, the last thing they are told about is the existence of these local mirrors. Shameful.
In short, too much money is being spent on overseas services because local services are too expensive. The regulators must regulate the industry to ensure growth of the local internet, and financially encourage this.