A base station receives loading information indicative of the loading of other base stations and determines a downlink transmission power budget as a function of the received loading factor information. The base station may decrease/increase a current power budget dedicated to downlink traffic channel segments in response to detecting an increase/decrease in loading at an adjacent base station. Thus, base stations operate in a cooperative manner reducing power output, in at least some cases, where loading at a neighboring base station increases thereby reducing the interference to the base station with the increased load. A base station can consider possible alternative transmission power levels, estimated levels of interference, and/or possible alternative data rates in making trade-off decisions regarding downlink power budget.