A system and method for dynamically optimizing the transmission power levels for downlink voice and data signal transmitted from a base station to user equipment is disclosed. The user equipment measures the strength and quality of the downlink signal, and transmits this downlink signal information to a control unit. The control unit analyzes the downlink information and employs an adaptive self-learning traffic algorithm which determines optimized power levels for the downlink signals. The control unit may optimize only one carrier signal or a subset of the multi-carrier signals in a preferred embodiment. The values of the optimized power levels are sent to the base station which then increases or decreases the downlink transmission power of one or more carrier signals based on this level. As a result, the area associated with dead spots is reduced and the quality of the downlink signals is enhanced.