Iceland and the Universe

This is just too good to be true:
Yesterday all three inhabitants of Framnesvegur 36 found the way together (a very rare occasion) into our kitchen to discuss a major problem: our internet seemed not to be working properly. Saga and me came to the same very odd conclusion. We could both only access Icelandic homepages. As we talked through it we thought that impossible - are there really national borders to the virtual world of internet?
Today I decided to pay a visit to the IT-service centre of the university that actually provides our house with a FREE internet connection (yes! it's great to be a student in Iceland!). After searching the campus for an hour I eventually found the office in some engineering building. I try to recapture the conversation:
Me: "Hi! Sorry, we seem to have trouble with our internet connection at home."
Assistant: "At home?"
Me: "Yes! This must sound ridiculous, but we seem to only be able to access Icelandic homepages."
Assistant (with a broad smile): "This is not ridiculous at all! We are having some trouble with cables to Europe."
Me (very astonished): "Wow! So this isn't a joke?! I thought there are no borders in the virual world."
Assistant: "Yeah, there is a big one between Iceland and the Universe."

She went on to tell me how I could reconfigure my connection at home and warned me that the connection might be rather slow untill the problem will be fixed.
A seemingly surreal story from a small island in the north Atlantic :o)