While this is technically true, it would be more accurate to say that it occasionally gives an indication of a potential problem. Let me explain. When he gets into the game he complains about this, thinking the Host should boot the San Fran player. In fact, this makes no difference to the game because the clients do not send data directly to one another, and that is what the Latency Indicator is measuring. Rainbow Six is built in such a way that only the client to Host latency need be measured.
All data is sent from each client to the server which then sends the data to each client.
It is time to Host that matters. If the Client has a The Host connection needs to have more speed than the average Client. This is because of the number of packets inbound. The server is getting data from ALL the clients constantly and then repacking this data and sending it out to all the Clients. This is as opposed to the Client sending its one packet out and getting a few back from the server.