Aspects of a method and system for controlling parameters of a communication channel between a femtocell and a cellular enabled communication device are provided. In this regard, characteristics of a cellular communication channel established between a cellular enabled communication device and the femtocell may be communicated to a network management entity. The network management entity may determine whether to adjust one or more parameters of the cellular communication channel based on the characteristics. The femtocell and/or the cellular enabled communication device may adjust the one or more parameters based on the determination by the management entity. The characteristics may be determined by the femtocell and/or the cellular enabled communication device. The characteristics may comprise one or more of signal strength, bit error rate, packet error rate, and/or available bandwidth. The parameters may comprise one or more of data rate modulation scheme, error coding scheme, and/or transmitted power levels.