Either the distance between the server and the location in the WHOIS data, or it's an estimate based on ping times.
Sticking the two points (server and ISP location) into Google Earth gives distances that are near enough the same.
BT 8MG, but always sync connect at 5.5Mbps. I am about 2.5km from the exchange in a straight line, so not too bad... BUT the problem is at peak times when i get throttled to :
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