GPRS is a packet-based mobile data service that enhances GSM networks. It introduces packet-switched routing to provide higher bandwidth and "always on" connectivity compared to GSM. The GPRS architecture includes new network elements like SGSN and GGSN that interface with external networks, as well as upgrades to existing GSM components. GPRS benefits include efficient use of network resources and billing based on data usage rather than connection time. It enables new mobile applications and services.