In this project, the possibility of employing the Adaptive Multi Rate (AMR) codec control signalling for power control purposes in the GSM 2+ system has been investigated. The AMR control signalling is originally intended for periodic adjustment of AMR codec rate. However, this control signalling can also be employed to faster and more efficient power control. The performance of this novel method for power control has been simulated. From the simulations, it has been found that the proposed power control method can deliver the same voice quality as the standard GSM power with at least 3 dB lower Carrier-to-Interference (C/I) ration. This leads to an approximately 25% improvement in the radio capacity. It should be noted that the proposed power control scheme is fully compliant with the standard specifications in GSM.