In this paper, a multi-user uplink channel with correlated Rayleigh fading coefficients is considered. Optimal data packet length is derived for throughput maximization of the system with stop and wait automatic repeat request (SW-ARQ). For the throughput formulation of the SW-ARQ system, the packet error rate (PER) is analytically derived using a two-state Markov chain modelling of the signal-to-interference ratio (SIR) of the time-varying channel. For the PER formulation, second-order channel statistics including average level crossing rate (LCR) and average outage duration (AOD) are derived. Numerical results indicate the accuracy of the obtained theoretical results. The effect of increasing the number of interferers on the throughput is investigated w.r.t given SIR threshold.
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