Since the 1970s, the Australian government has seen the information and communication technology industry as a viable industry for promotion and investment. This paper attempts to empirically evaluate policy initiatives geared towards geographical co-location through a survival analysis of Internet consultancy organisations that were in operation in New South Wales and the Australian Capital Territory between 1996 and 2003. This will be augmented by anecdotal evidence through interviews done with representatives of organisations sampled from the dataset. It will be shown that co-location in Australia does not offer the necessary resources for survival as predicted by locational economics. Rather, organisational networks that transcend physical displacements are of more importance in ensuring organisational survival.