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In this paper, we present a model for wireless losses in packet transmission data networks. The model provides information about the wireless channel status that can be used in congestion control schemes. A Finite State Markov Channel (FSMC) approach is implemented to model the wireless slow fading for different modulation schemes. The arrival process statistics of the packet traces determine the channel state transition probabilities, where the statistics of both error-free and erroneous bursts are captured. Later, we establish SNR partitioning scheme that uses the transition probabilities as a basis for the state margins. The crossover probability associated with each state is calculated accordingly. We also propose an end-to-end approach to loss discrimination based on the channel state estimation at the receiver. Finally, we present a scheme for finding the channel optimal number of states as a function of the SNR. The presented FSMC approach does not restrict the state transitions to the adjacent states, nor does impose constant state duration as compared to some literature studies. We validate our model by experimental packet traces. Our simulation results show the feasibility of building a fading channel model for better wireless-loss awareness.