Intelligent transportation systems (ITS) have been developed to improve traffic flow, efficiency, and safety in transportation. Technological advancements in communication such as the Vehicle-to-Everything (V2X), Vehicle-to-Vehicle (V2V) and Vehicle-to Infrastructure (V2I) enable the real-time exchange of information between vehicles and other entities on the road network, and thus play a significant role in their safety and efficiency. This paper presents a simulation study that models V2V and V2I communication to identify the most suitable range of data transmission between vehicles and infrastructure. The provincial city of Xanthi, Greece is used as a cases study, and the goal is to evaluate whether the proposed placement of Road Side Unit (RSU) provided adequate communication coverage on the city's road network. An analysis through different scenarios identified improvements in traffic management, driving behavior and environmental conditions under different RSU coverage. The results highlight that the communication range of 400 meters is the most adequate option for optimum traffic management in the city of Xanthi.