diff --git a/README.md b/README.md
index 8f5bd81..307bb3d 100644
--- a/README.md
+++ b/README.md
@@ -5,29 +5,69 @@ The project is based on the gsm-receiver which was written by me for Airprobe pr
 The aim is to provide set of tools for receiving information transmitted by GSM equipment/devices.
 
 Installation
-------------
+============
 
-Currently compilation of new gnuradio is required in order to run gr-gsm. 
-In order to compile gnuradio on fresh Ubuntu 14.04 run following commands:
+The project is based on GNU Radio signal processing framework and takes advantage of its great features like stream tagging and message passing.
+Installation of GNU Radio is therefore a basic requirement for compilation and installation of gr-gsm.
+
+
+Building GNU Radio from source
+------------------------------
+For advanced users and developers it is advised to compile GNU Radio and required third party GNU Radio projects from source.
+
+In order to compile GNU Radio with optional projects needed in order to receive data from USRP devices (uhd) and RTL-SDR devices (gr-osmosdr) run following commands:
 
 ```
 sudo apt-get install git
 git clone git://github.com/pybombs/pybombs
 cd pybombs
 ./pybombs install gnuradio uhd gr-osmosdr
+```
+
+At the first run pybombs will ask for configuration options. As a target directory select /usr/local/. The rest of the options can be left as default.
+Pybombs will then take care of downloading all of required libraries for installation of gnuradio and build it will build and install it in /usr/local/.
+
+
+Installation of GNU Radio from packages (Ubuntu 14.10)
+------------------------------------------------------
+Gr-gsm works with GNU Radio versions 3.7.3 and newer. On Ubuntu 14.10 it is possible to compile and use gr-gsm together with GNU Radio available from distribution's standard repository.
+To do this install all required packages enter following command in a terminal:
 
 ```
-At the first run pybombs will ask for configuration options. As a target directory select /usr/local/. The rest of the options can be left as default.
+sudo apt-get install gnuradio-dev gr-osmosdr libgnuradio-uhd3.7.2.1
+```
+
+Gr-gsm blocks that will be later installed will be located in /usr/local directory. To tell Gnu Radio Companion to look for blocks in there create config.conf in ~/.gnuradio directory:
+```
+mkdir ~/.gnuradio
+touch ~/.gnuradio/config.conf
+```
+
+then edit ~/.gnuradio/config.conf and put following text inside:
+```
+[grc]
+local_blocks_path=/usr/local/share/gnuradio/grc/blocks:/usr/share/gnuradio/grc/blocks
+```
+
+It can be done with following commands:
+```
+echo "[grc]" >> ~/.gnuradio/config.conf 
+echo "local_blocks_path=/usr/local/share/gnuradio/grc/blocks:/usr/share/gnuradio/grc/blocks" >> ~/.gnuradio/config.conf 
+```
+
+Compilation and installation of gr-gsm
+------------------------------------------------------
 
 To download gr-gsm sources run following command:
 
 ```
 git clone https://github.com/ptrkrysik/gr-gsm.git
 ```
-Make sure that you have all required packages:
+
+Make sure that you have all required packages (checked on Ubuntu 14.04 and 14.10):
 
 ```
-sudo apt-get install cmake libboost1.55-all-dev libcppunit-dev swig doxygen liblog4cpp5-dev python-scipy
+sudo apt-get install cmake libboost-all-dev libcppunit-dev swig doxygen liblog4cpp5-dev python-scipy
 ```
 
 To compile and install gr-gsm run:
@@ -40,3 +80,4 @@ make
 sudo make install
 ```
 
+