Digging the grave of classic telecoms?

I am posting briefly via WiFi from a Cisco conference in Riga, where I have just seen a demo of how, using IP phones and dual-mode (WiFi and GSM) mobiles, plus video calling, one can completely get around the classic switched telephony network. As I watched, I flashed back to the presentation of Lattelekom's first WiFi hotspot at a cafe in Riga a couple of years ago. The Cisco guy, Vladimir (also hosting today's event) made an IP call to Finland as part of the demo, which was like saying, this is digging the grave of classic telecoms. I thought it was a piece of unintended black humor, showing Lattelekom how it would be killed. Now some of this (Skype, SIP, other IP telephony technologies) is a significant reality.