Lags - yes. These do happen to me a lot on PS4, rarely on PC (Cyrodiil mostly).
Drops (like in disconnects?) happen to me every now and them, but are rather rare (I've had a few in vMA and maybe a few each month in other areas). Most of the DCs I get I can track to either my ISP (a whole "segments" of internet unavailable for a minute or two, while other parts are ok at the same time) or my own router.

Though I've heard a lot of people are experiencing connectivity issues. It's most likely their ISP routing policy. Just because one thing works fine (like a local google cache servers or some other mmo) doesn't mean the ISP provides good connectivity and short, dependable paths to any part of the network.

Generally a company serving content connects their servers to a few (directly or indirectly) internet exchange points (or uses CDN for file delivery, which in turn has a global network of cache servers connected to many big IXPs). The rest is in the hands of ISP (eg. whether they have a decent routing and take part in a particular IXPs).

For example, I've got two independent services. Both ISPs are considered decent. On one the ping to ESO EU servers are ~80ms (with in game latency showing 110-120: bigger packets, more data, processing time). It takes a weird route of going around the country and few neighbouring countries before it reaches destination after 15 or so hops). The other is ~25ms and 50-60 in game, but connects nearly directly to one of few big local IXPs and then goes pretty much directly to destination, reaching it after 5 hops.

I'm ~650km away from the servers, though the actual way the packets travel might be as much as twice of that distance, accounting for switches and routers induced delays, I'm most likely quite close to the lowest possible from my place (south western Poland).

it was event in wrothgar, zos just cannot scale the load. Even in wrothgar I had latency like 400-500 on a regular basis. Now event is over and vMA should be more smooth.

-vovus