In GSM, a bandwidth of 200 kHz is chosen to balance the needs for voice quality, capacity, and interference management. While a smaller bandwidth like 100 kHz could technically increase the number of available ARFCNs (Absolute Radio Frequency Channel Numbers), it would compromise voice quality and increase the likelihood of interference between channels. The 200 kHz allocation allows for sufficient guard bands and accommodates the modulation techniques used, ensuring effective communication and maintaining service reliability.