What it is
Re-configurability entails, in this context, the pervasive use of "software re-definition" (it is not enough to define once), empowering (possibly live) upgrades/patching of any element of the network, and of all services and applications running on it.
It cuts across all types of radio systems (paging to cellular, W-LAN to MBS, terrestrial to satellite, personal communications to broadcasting) enabling the integration of many systems in the same hardware platform. But, more importantly, it also cuts across generations (second to third to fourth). It cannot be conceived as just a way to implement third generation, ignoring second generation and compromising the potential of fourth generation, or even more short term, just to solve the multi-mode problem.
Re-configurability is expected to play a critical role in maintaining Europe's leadership in the area of Mobile/Wireless Communications by increasing flexibility; reducing deployment as well as operation and maintenance costs; creating new business opportunities and new jobs; facilitating enhancements and personalisation; etc.
Completing the picture
To complete the picture, let us take as reference the block diagram below.

Mobile Transceiver Block Diagram
It provides a somewhat simplistic view of a mobile communications transceiver, and can be easily modified to describe a base station. Moving from the Antenna/RF stages towards the Base Band processing part of the transceiver, we move from a hardware- towards a software-centric design.
But let us look at the elements at both ends of the transceiver chain. On one side, we have the antenna, more and more integrated with the RF stage. Here, re-configurability, especially when associated with the use of smart antennas, will allow for a more efficient use of the spectrum.
On the other, we have the (network) protocols, the application, the man-machine interface (MMI), and ultimately the user. Re-configurability will allow adjusting the application to the MMI limitations and the user preferences, and for invoking at the level of the network all the necessary adaptation/transcoding. It will also make it simpler to deal with multi-streaming. In fact, multi-streaming can make good use of different input channels, in different spectrum bands (e.g., DAB, GSM, UMTS).