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Recent advancements in Voice over Internet Protocol technology have enabled anyone with a computer and a broadband Internet connection to communicate worldwide without paying traditional long distance fees. And service providers are discovering that VoIP can add a new, and often very appropriate, dimension to their services without a great deal of difficulty. VOIP companies are popping up in great numbers in hopes of cashing in on the relatively new industry.

The Web hosting industry is beginning to follow suit. HostGator recently announced its plans to launch VOIPo, a VOIP telephone service, in 6,000 markets throughout the United States. The hosting provider hopes to extend this offering to the Canadian and Australian markets by the end of the year.

“VoIP is getting hotter and hotter, so the demand’s there,” says Timothy Dick, president and CEO of VOIPo, “but there’s no solid reseller solution in the entire industry at this point.”

Operating as an independent subsidiary of Host Gator, VOIPo is expected to launch in late September. The service will be offered directly to customers, enabling them to place and receive phone calls with their broadband Internet connections at a significantly lower cost than standard phone lines.

However, the main focus for the VOIP service is its reseller approach. Host Gator will offer the service via its reseller platform to its network of more than 11,000 partners.

“A lot of hosting companies find it hard to enter the market because it’s so expensive,” says Dick. “In order to launch a VoIP service that is functional enough to offer it to the public - in terms of meeting all the requirements of the FCC - you’re looking at a minimum of $250,000. For most small companies that’s really not feasible.”

Dick says that while there are other VoIP host solutions that are currently being offered in the market, they do not offer the complete service that VOIPo will offer.

The company has developed its own VoIP software completely in house, and Dick is confident that it will revolutionize the industry.

“I would consider this to be the cPanel for the VoIP industry,” says Dick. “cPanel was something that really opened up the Web hosting industry a lot. This is the software that does that for the VOIP industry.”

HostGator is currently conducting private beta testing and will soon invite pre-launch group members as well as select Host Gator customers to test the service.

Dicks says the Web hosting industry is the ideal market for reselling VoIP services because they are comprised of prospective customers who are technologically knowledgeable.

“They’re familiar with VOIP, most of them,” says Dick. “There not really nervous about adapting it, because you run into that a lot with other customers. But in the hosting industry, you’re more familiar with it. You’re more likely to have access to a customer base that’s tech-savvy.”

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