The present invention provides a wireless communication system capable of managing multi-hop communications. In one embodiment, upon receiving a request from a mobile terminal for initiating a call, the system determines whether the mobile terminal can use multi-hop communication services and its operating mode for multi-hop communication. The system also determines whether relaying can be provided by other mobile terminals. Then, the system will establish multi-hop communication between the mobile terminal and the system based on the operating mode of the mobile terminal. In a default mode, multi-hop communication can be established without the user's knowledge. In a prompt mode, however, the system sends a prompt to the mobile terminal for selection of the multi-hop communication services, along with information about incentives for using the services. After the multi-hop communication is completed, the system records information relating to the multi-hop communication services for the originating and relaying mobile terminals in the HLR/VLR.