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Yes the purpose of GSM AGC is also to provide different power levels. Normally the base station interacts with you mobile phone and sets the power level. If the base station sets a high power level this means that your phone power consumption will be increase and decrease your battery life. So normally the phone reads the power level request from the BT and sets the output level accordingly. The power level must be quite stable and not to oscillate so the AGC it is also responsible of fine control of the power level.