The GSM system architecture consists of four main subsystems: Mobile Station (MS), Base Station Subsystem (BSS), Network Switching Subsystem (NSS), and Operational Support Subsystem (OSS). Each subsystem has distinct components and functions, with the MS including mobile equipment and a SIM card for communication, the BSS handling traffic between mobile phones and networks, the NSS managing system switching and connections to other networks, and the OSS supporting maintenance and troubleshooting of the entire system. Together, these components facilitate effective mobile communication.