Yes that is correct. Geographical proximity can mean anyone who wants the same data you want and you are in a position to exchange it physically. So it can a friend you meet in college everyday or your neighbor even.
If you have never met before but can exchange data physically -- why not! The requirements of this (summarized) are: 1. Common content, 2. Ability to exchange data physically. And if you are in a LAN, not even that.