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There have been strong demands for higher speed data transmissions in mobile communications. To reduce the peak transmit power while increasing the data transmission rates, authors proposed a wireless multi-hop virtual cellular network (VCN). The first step of transition to VCN from the existing cellular network (CN) is an introduction of a 2-hop VCN. Automatic repeat request (ARQ) is indispensable technique in packet transmission. Since the delay time increases in the multi hop communication, the throughput performance of 2-hop VCN may degrade compared to the conventional 1-hop CN. However, the frequency reuse distance of 2-hop VCN may be shortened compared to the conventional 1-hop CN, since the transmit power decreases in the multi hop communication. In this paper, the relationship between the frequency reuse distance and throughput of 2-hop VCN with selective repeat (SR) ARQ is evaluated and compared to the conventional 1-hop CN case.