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You cannot easily geo IPs you do not own.
I think Maxmind are probably one of the defacto offerings. There are free/paid downloadable databases you can use with varying 90-99% accuracy and granularity.
Some areas are hard to pinpoint (the UK seems to be one of them) and unless you're Google with a ton of datapoints, it's hard to map anything closer than the country level.
Not sure how each exactly do it but I think it's a combination of WHOIS and latency between routes for better granularity.
Do you mean have different IP's tracing to different countries?
You can simply get servers in those locations and do a gre, but, why would you want to?
I don't think that geolocation works very well at the best of times. Maxmind is certainly crap in that regard (and others as well!). You'll notice that the location of the registered company will come up just as often as the location of the server. I don't know where these companies get those 90% range confidence numbers. I'm guessing they made those up as well.
Just curious how companies like hostripples get all those ips