So what's local traffic?

Lemme give you some scenario's I am thinking of to start the discussion.

XNet connection in same house (two DSL lines) - yea yea, I know why would you :P
XNet connection in same suburb (i.e. same exchange)
XNet connection in same city
XNet connection in different city
XNet co-located customer equipment (do XNet do colo?)
XNet officially hosted content (listed on website)
XNet unofficially hosted content (not listed on website)
XNet user homepages (I guess that this falls somewhere between official and unofficial)

An official response (or even unofficial from someone at XNet) would be great.