Linode vs local 1 Mbps
Is it a no brainer to go with Linode even if it adds a little latency (being located 2200 km away)?
So depending on what your measurement tool is showing (a typical download measurement is probably in term of data payload bytes, and with "K" = 1024), you should peak around 118KB/s (or 118KiB/s using the new fangled "kibi" prefix).
By default, a Linode will be able to generate 50Mbps in outbound bandwidth. Now depending on the pipe for a single user (bandwidth x latency) they may not see all of it, such as in your test, but multiple users can use up to that point depending on the load on your server, on average users might even see more improvement than you measure with a single test stream.
Note that the download test files are on hosts that aren't limited (I can get test downloads to a Linode in the same data center at 40-60MB/s). You can request to bump an individual Linode limit higher but have to show the ability to consume it.
At your peak rates in the ~350KB/s range are you saturating your download link? You should be able to get much better rates for the download files unless your distance is so far that you need larger than default TCP window sizes to keep the network pipe full. But for example, I can get 3+MB/s from a NY client to the Fremont data center which is a pretty long haul for latency.
I had someone download a test file from our old web server. He reported 64 kB/s. So 64 kB/s upstream, and about 400 kB/s +/- downstream. That's sad!
It would appear that Linode is the way to go! I wish I would've known about Linode a long time ago.
You could do some spot checks with speedtest.net to gauge the link itself - it's not a perfect test (and the Java application itself becomes a bottleneck on non-Windows platforms around 20-30Mbps), but it's a reasonable way to get a baseline and it should be reasonably accurate for a 15Mbps downstream link.
It's a pretty safe bet though that if you were to host the content on a Linode, that your users will be getting far more than 64kB/s downloads.