Actually, MaxMind says you are in Sydney.
http://www.maxmind.com/app/lookup_city
GeoIP databases track regional allocations of an ISP's IP space, not the location of the ISP.
They are more than 90% accurate to the city level -- that's accuracy in determining the true location of the user, not the ISP.
These databases would be worthless if your assumption were true (over 100 million American households would map to one of three cities of their ISP's headquarters, for example) -- so it's good that this isn't the case.
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