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The presence of location-dependent and burst errors in wireless networks introduces difficulties in developing packet fair queuing (PFQ) algorithms for wireless networks. We introduce a new theoretical model to build PFQ algorithms for both wired and wireless networks and an algorithm to approximate the proposed model. The proposed model has some advantages in its application to wireless networks: self-detection of the session state and self-compensation. The proposed algorithm provides all expected characteristics of wireless PFQ: short-term fairness to error-free flows and long-term fairness to error-bounded flows; short-term throughput bounds to error-free flows and long-term throughput bounds to error-bounded flows; delay bounds to error-free flows; graceful service compensation and degradation. The algorithm is called WMRPS, wireless modified rate proportional server, based on the rate proportional server of D. Stiliadis and A. Varma (see IEEE/ACM Trans. on Networking, vol.6, no.2, 1998).