I don't think it's a great issue if a provider bids or set his or her rate low. I know it is for those who are doing oDesk jobs for years already, maybe for those who got a client who is big time and increased their hourly rate so they took advantage of it or maybe for those who are really deserving because they got skills. But why blame it to providers who are just starting? I think it's up to buyers if they will hire these providers with low rate but they get low quality or maybe clients are also too tight in budget.

There are some providers who just got so lucky that their rate increases because of buyers that still don't know how to play in oDesk that these providers don't know how to look back where they started and just simply rant about it.

If you got the skills and experiences I don't think you have to worry about this issue because buyers with great company that has big budget will see and scan thoroughly applicant's cover letters, profiles, and portfolios and of course who they think is the best for the job position will win it, no matter how high your rate is. They are confident that their tasks will completely done in accurate and efficient manner.

It's a challenge both for buyers and providers.