I play GW now (on American Servers) and face no lag.
However, there's a gotcha, unlike A3 where there's a common map on the server where u can find any other player of A3..in GW, u get ur own private copy of the world free of other players UNLESS YOU PARTY WITH THEM.
This means @ any given time, there wont be more than 8 people on a map.I guess the comparison with A3 model cannot be equated..
A3's problem is more of a direct one. I doubt the graphics can be supported on the weak indian lines(or ISPs like the description I mentioned in my post above). A3 HAS TO WORK with ISPs with ALL fervor to get routers 2 their game system. Its more important that before going pay they do it. Coz right now its FREE, so they're allowed to get away with it

IGN - Alador
GW IGN - Alador of Numenor