Looking like the former at the moment, judging from Tyrant’s mailing to an Australian UO players’ mailing list:
We are moving forward on a local server for Australia / New Zealand. We do not have a hosting partner selected at this time, which will delay us somewhat. It was disappointing that this was not resolved when our Network Operations manager visited Australia last week. More on this hosting relationship will be announced once we get this sorted out.
We do want to launch before Christmas, but it will be dependent on getting a hosting partner.
VP Online Services
Origin Systems, Inc.