Okay. I finally decided to ditch my long distance provider and switch to Vonage. It became an interesting quest, because Vonage offers service at 30$ per month, unlimited calling. There are other similar companies which may even offer this service at lower rate (such as Ooma etc).
But for some reason, I decided to use Vonage itself.
Step 1 was to activate my device/account.
Step 2 was to initiate my number transfer request.
Step 3 was to talk to my existing provider to split my phone line and DSL line into two different accounts.
Step 4 was to talk to Vonage rep and say that my number is going be split into two account in x number of days.
The shock started here: The account rep I talked to said that since my phone line is going to be split only after 8 days, he needs to cancel my number transfer request. That was weird. I thought all they needed to do is put some "transfer after this date". Anyways, that got cancelled and I got an email indicating that temporary number assigned to me is now my permanent number. That was another shocker. (It seems to me that if a transfer request can not be completed in certain number of days, it probably flags into a report to someone).
Finally, I ended up calling customer care again, they finally reinstated my transfer request. Let's see how it goes now. Will keep you all posted.