The present invention is a method and apparatus to aggregate or bundle packets to optimize the resource utilization and improve the transport efficiency of packets which are transferred between various protocol layers in a communications network. One embodiment of the invention sets forth a method of aggregating packets of a first size to packets of a second size for transmission in a wireless communications network between, for example, a base station controller and base transmitting station. The method includes the steps of calculating a maximum bundling factor represented by (an IP packet MTU size at a first location minus protocol overhead) divided by an application layer packet size and determining a most efficient bundling factor in terms of packet fragments, where the most efficient bundling factor is determined by a largest packet per fragment ratio. If the number of packets to be bundled is less than or equal to the maximum bundling factor then all packets are bundled together for a next step in the transmission. If the number of packets to be bundled is greater than the maximum bundling factor, then packets are bundled according to the most efficient bundling factor for the next step in the transmission. If there are multiple bundling factors having a same bundling efficiency, a larger of the multiple bundling factors having the same bundling efficiency is selected as the most efficient bundling factor.