This paper evaluates a new method to combine contiguous frequency reuse with random access in wireless packet-switched networks. We consider a radio network with two base stations receiving packets transmitted by a large population of mobile users. Both stations share the same channel and therefore transmissions to one base station in one cell interfere with transmissions to the other base station in the other cell. A simulation of a two-cell system is performed, to study the interaction of retransmission traffic in two cells. To consider the performance of such system analytically, we model a one-cell system with time-varying channel properties: If only one station is receiving messages from its cell, the channel is assumed to be in “good state”; if terminals in both cells are busy the channels are assumed to be in “bad state”. For conflict resolution, the stack-algorithm is used. The packet delay is calculated. Our results confirm that in wireless packet networks, it is advantageous to allow neighbouring cells to share the same channel.