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Outlines the requirements for the various digital signal processing functions of the pan-European digital mobile cellular telephone system in terms of computational power and RAM and ROM capacities, and describes a digital signal processor (DSP) solution which is able to integrate all of these digital baseband functions for a hand-held terminal onto one VLSI chip. The KISS-16V2 processor, a low-power CMOS 16-b DSP, is optimized for digital telecommunications, especially for Groupe Speciale Mobile (GSM). A power-down mode together with the capability of memory and multiplier standby operation make this DSP well suited for handheld devices. A design strategy based on the extensive use of cell compilers and synthesis tools reduces the design of further DSP derivations to a minimum.