A Packet Data Services Node (PDSN) optionally frames user data from an Application IP packet received from a public data network (e.g., the Internet) into a Point-to-Point Protocol (PPP) frame, and encapsulates the Application IP packet or PPP frame data into one or more Generic Routing Encapsulation (GRE) frames for further transmission within a wireless communication network. The PDSN additionally inserts into each GRE frame, Application IP packet fragmentation information that indicates whether the Application IP packet or PPP frame terminates in the associated GRE frame. Other network nodes, such as a Packet Control Facility (PCF) or Base Station Controller (BSC), may interpret the fragmentation information and ascertain the boundaries of Application IP packets or PPP frames, using this information to improve network efficiency.