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Cross-layer optimization approach is applied to allocate channel times of time-division multiple access (TDMA) to utility functions which send different video streams with different rate-distortion characteristics. Given a channel time, each utility function solves an optimization problem to obtain the optimal source code rate, channel code rate and media access control (MAC) frame size. In this paper, we derive mathematical models to represent end-to-end distortion of video streams and 802.11a-like MAC and PHY with automatic repeat reQuest (ARQ) and rate compatible punctured convolutional code (RCPC) over additive white Gaussian noise (AWGN) channel. These models are formulated as a convex optimization problem, and it is solved by the primal-dual decomposition method. In addition, coexistence among the proposed utility functions and conventional utility functions is discussed. Finally, numerical examples show that significant reduction of overall distortion of utility functions can be achieved.