There are alot of cheap hosts. Some because they have bulk others because thier sevice isn't that good and they need a way to sell.

Anyone know this one: http://www.surfspeedy.com/index.htm

I think cheap doesn't necessarily mean service not good.

There are two answers to your question depending on how cheap somebody is actually trying to sell it.

1. Hosting is getting cheaper by the day. With a 500 GB hard drive only costing a couple hundred dollars then of course hosting is going to be getting cheaper. Also, there are more and more hosting providers coming into the game every day. When a customer has more options to choose from the companies must cut back on their prices to produce more sales.

2. Many companies also oversell there hosting. An example of this would be a company offering 100GB disk space and 1000 GB Bandwidth for 4.99 per month. Everybody knows this is not possible. These providers rely on the fact that their customers won't use all the space they are allowed to in the plan. This kind of overselling can get many companies in trouble in the long run.

This
was the original title?

US providers are cheaper. So "Why are US providers so cheap???!!!

It may be due to competition. As you'll notice there are hundreds of web hosting sites and if you're not an established entity you'll be left out behind the others. That's why offering lower prices can get them customers.

These days the over all cost of starting a webhosting is getting low. the hardware and equipment are getting cheap and moreover outsourcing everything has really brought price down

Hi,
I have unlimited traffic on my web space and a 50 mb size limit from my free webhost, but the files I can upload are at a 200 kb limit.

I doubt that I'd ever reach this limit by making webpages with a 200 kb file size limit. They know this, right? :/

Low cost hosting can be done well. The best thing to do is find a host that isn't overselling. Yes it is still possible. If you can sell hosting fo $5 a GB you can still bring in $1000 (with about $700 profit on average) on a box. So as long as the cheap hosts not trying to get rich on one server your okay.

This is a good info and I also believe that web hosting is getting cheap because of competition since anything new is always expensive but when they get competitors, naturally they will lower down their price.

Because people always looking for Cheap and Reliable Web Hosting