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If you are talking about PvP that's a bit trickier, since it all depends on your connection to the other player(s) as it is P2P. With a good connection its smooth. If you are fighting against someone in Australia (assuming you're in Europe) then you might not be hitting them where you think you are hitting them (or maybe even not hitting them).
But if you are thinking about getting the game for PvP i would advise against it. You have to go out of your way to get PvP and most of the time the people you might attack are not looking for PvP and will get quite salty if attacked.... assuming you can even find someone to attack in the first place. If you are looking for competitive PvP against others wanting it, well, you've got a lot of work ahead of you before you can even contemplate it, unless you find people willing to fight you in unengineered ships.
Player to Player interactions are peer-to-peer and only occur when instanced with one or more players (ie. you're in the same area and have been connected by the match-making server)
Real time BGS! Woo hoo!