In a data communication system capable of variable rate transmission, the data rate is determined by the largest C/I measurement of the forward link signals as measured at the Access Terminal. In one embodiment, the data transmission is scheduled based on an Access Terminal initiated forward power control, which reduces forward link rate quantization loss due to excess transmit power. The Access Terminal reports to the Access Point the excess C/I estimate for the selected rate. The Access Point then reduces its transmit power by an appropriate amount when serving that Access Terminal. In another embodiment, the data transmission is scheduled based on an Access Point initiated forward power control. The Access Point varies its transmit power over time either randomly or in synchronism with neighboring Access Points in the communication system, which enables an increase in the throughput achieved by users that receive a significant amount of interference.