You seem to be mixing up some stuff. You say you're connected to the Toronto server. I can only assume you're some distance from Toronto, so that calls to there are long distance. However, you can also get IP based local phone service from Rogers (as I do) and others. I don't see anything in your posts to indicate where you are and your bits & pieces of info make it difficult to understand your situation. If so, you'd be using IP for the long distanance portion of the call and then terminate on the distant POTS. This is the way all IP based long distance providers work. They use IP to where it's a local call and go POTS the rest of the way. I've seen some that even provide you with a local number at the distant end, so people can also call you for a local call. That "long distance" B.S. might also include call quality issues, if you travel over the public internet. While IP phones generally work well, there will always be call quality issues over the public internet, because you have no way to control how your data is handled. On the other hand, with internal IP networks, such as Rogers uses for home phone, it's very easy to implement quality of service for voice calls. In fact their equipment is likely configured to give priority to voice over regular internet traffic. I have set up several VoIP networks, in businesses, to do just that. However, once you hit the internet, you lose all such control over priortiy and other QoS issues, such as latency.
Bottom line, you can get cheap long distance over the public internet, but don't bet on getting the same quality of service as you would over a dedicated or managed network (TDM or IP).
BTW, IIRC, GSM runs 12.2 Kb/s but I don't believe it's G.729A. It uses something called Enhanced Full Rate (EFR) codecs.