A system and method for dynamically adjusting the bit rate of a data transmission. A sending endpoint transmits data, such as video conferencing data across a network to a receiving endpoint. The receiving endpoint maintains information about the performance of the network and uses the information to determine when to request an increase or a decrease in the transmission rate. The information is maintained as a set of called parameters. The called parameters provide historical and statistical information about the call. For example, by maintaining information that indicates the number of intervals since the last increase was attempted and the number of intervals that the last increase was maintained, the receiving endpoint can avoid oscillating between a higher bit rate and a lower bit rate. If a bit rate increase was requested, but was not maintained for a sufficient period of time, then the endpoint will delay a subsequent request for an increase until the call parameters indicate that the increase will be successful. The call parameters include both predetermined and dynamic thresholds. The thresholds are compared against measured network performance indicators to determine when to request an adjusted bit rate.