GPRS is a packet-based mobile data service that provides faster data transmission speeds than traditional GSM. It works by aggregating multiple data channels to transmit packets of data. Key features include speed, immediacy of access, and support for new applications. While it enables services like banking, e-commerce, and messaging, limitations include limited cell capacity shared between users and typically lower speeds than advertised. Overall, GPRS provides faster mobile internet but continues to be improved to compete with 3G technologies.