A system and method for adapting an application source rate to a load condition are provided. A method for forming a connection includes receiving a service authorization request for service between the first device and the second device, requesting a formation of a first bearer at a first data rate between the first device and the second device, and determining if the first bearer was formed. The method also includes transmitting a first positive response if the first bearer was formed, forming a second bearer at a second data rate if the first bearer was not formed, and completing the connection. The service authorization request includes a request to establish a connection at the first data rate, and the second data rate is different from the first data rate.