A wireless access point and multiple wireless terminals exchange point-to-point transmission power control parameters. The wireless access point gathers parameters based on transmissions received from each of the wireless terminals. Each wireless terminal gathers parameters based on transmissions received from each of the other wireless terminals and from the wireless access point. In one operating mode, the parameters gathered by the wireless devices are forwarded to the wireless access point, and, based on all received and local parameters, the wireless access point adjusts its own transmission power and sends control signals to the wireless terminals directing transmission power adjustment. In another mode, all parameters are exchanged between every wireless terminal and the access point so that each can independently or cooperatively make transmission power control decisions. Transmission power control parameters include received signal strength, error rates, estimated battery life, availability of unlimited power, active versus sleep mode ratios, anticipated bandwidth utilization, coding schemes available, deterministic/non-deterministic requirements, encryption and security requirements, quality of service requirements, mobility, etc. Gathering of parameters involves both retrieval of preset parameters from memory and generating parameters based on received transmissions (including test packets).