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Originally Posted by pem
Proxies aren't vital - they can be very useful for cutting down on ISP to ISP traffic and (in theory) making browsing appear faster by caching websites.
Modern dynamic sites using asp, php etc can largely negate these advantages and can even make proxies seem slower as they keep having to go back to the original server for the pages.
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They cut down traffic from PoPs to network borders, which could be very important in the future should access rates increase substantially - they do make a difference, unless you have stats of bandwidth they save pem I don't think you can really comment - they cache images and can do streaming media as well, think of the savings there.