The problems of Internet stability, heterogeneity, fairness of bandwidth sharing among streams, efficiency of use and congestion control have been solved in this article. This paper proposes an improved scheme of TCP proxy acknowledgement based on Automatic Repeat Request (ARQ), which improves throughput, reduces delay and saves uplink bandwidth of wireless link, and is more suitable for future asymmetric networks. The substantial improvement is observed during the experimentation as processing efficiency of protocol. The observed results revealed that overall processing time for each packet is approximately equals to one fourth of the transfer control protocol and the reduction of 59% is also observed in the utility of resources. The protocol also incorporates various simple techniques for the recovery of loss to improve the throughput in noisy wireless conditions. The results show that the adoption of the average diversity combining technology is helpful to improve the throughput and effective factor performance, and can reduce the requirement of radio link protocol (RLP) maximum retransmission times. As nearly 90% of uplink acknowledgement frames are filtered, the uplink bandwidth utilization rate is significantly improved. Decomposing large data frames into small data frames is also helpful to improve system performance.