A device and method for controlling transmission power in a network device is disclosed. The method comprises transmitting, at an initial transmission power, an initial data transmission intended for at least one receiving device on a network, receiving an initial response from the at least one receiving device, the initial response including an initial received signal strength indication (RSSI), determining a power loss based on the value of the initial transmission power and the received RSSI, determining a new transmission power based on the determined power loss, and transmitting, at the new transmission power, one or more additional data transmissions intended for the at least one receiving device. The method further comprises determining whether link quality is deteriorating, and applying additional measures for optimizing transmission power based on the link quality and other factors. A solution for mitigating a loop condition is also disclosed.