I'm not totally sure this is it but..
The server(s) are located at the cheapest hosting facility that could be found. One of the ways this place gets to be the cheapest is by not actually having enough bandwidth/network hardware to handle peak usage times. Another problem with being the cheapest is that a certain amount of crappiness is acceptable because, hey, it's still the best deal in town.
The cheapest datacenter you can find will always suck. It wouldn't be that bad if we weren't playing an online game where you can die and lose hours of effort. Switching to a more expensive, very reliable datacenter is seen as necessary to the creators of this project. Donate what you would pay to play on live each month, and try to remain positive. Also, you might consider just doing something else for entertainment during the times when the datacenter is usually DC'ing everyone.
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