This paper proposes a novel algorithm which enables an ARQ protocol defined for IEEE 802.16e to vary the packet size depending on wireless channel behaviour. The algorithm adopts an analytical approach for dynamically evaluating the optimal packet size. The latter is derived from an expression of the ARQ protocol efficiency, obtained by exploiting a finite-state Markov error model which also considers Adaptive Modulation/Coding. The effectiveness of the designed algorithm in improving TCP performance has been evaluated.
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