GPRS is a packet-based mobile data service that provides faster data transmission speeds than traditional circuit-switched networks. It utilizes new network elements like the SGSN and GGSN to route data traffic. The SGSN handles mobility management and IP address assignment, while the GGSN acts as a gateway between the GPRS network and external IP networks. This allows mobile devices on GPRS networks to access services like the internet at speeds up to 118 kbps.