A system and method for providing upstream adaptive modulation. Burst parameters associated with a range of data interval usage codes (IUCs) are defined. Each of the data IUCs has a different modulation order and forward error correction (FEC). The SNR and codeword error rate for each satellite modem in the network are monitored. The data IUCs are dynamically assigned to different satellite modems within an upstream channel based on SNR and/or codeword error rate to enable each of the satellite modems in the upstream channel to achieve maximum bandwidth efficiency during upstream data transmissions. Bandwidth requests are received from the satellite modems and granted. The grant includes the assigned data IUC. The data bursts received in the upstream channel are each processed using the parameters from the assigned IUC for each of the satellite modems sending data in the upstream channel. When any of the satellite modems' SNR and/or codeword error rate changes, the data IUC for that satellite modem is changed accordingly.