Paper proposes a new design and a simulation model for the pico base station based on IEEE 802.16e standard and evaluates its performance in a mutihop-relay and mesh networks. The proposed base station design allows multihop-relay communications and thus opens a possibility for the proposed base station to be an element of mesh networks. The conventional IEEE 802.16e base stations interconnected vie router or Ethernet switch are applied for point to point links and broadband wireless access. The design has been evaluated using proposed simulation model and the simulation tool OPNET Modeler for different scenarios that present real case deployment options for mesh networks thus allowing the multihop relaying that is to be supported only in the upcoming 802.16j standard, while the design is based on existing and well tested building blocks for conventional IEEE 802.16e base station.