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Packetized audio applications have to adapt to the fluctuations in the network conditions. By making mechanisms like playout time and rate control adaptive; applications can keep an acceptable QoS level at the terminal systems. We propose an algorithm, fair stable rate control, for adaptively adjusting the transmission rate of the transmitter to the congestion level of the network. The algorithm was designed for reducing the losses and improve utilization in a TCP-friendly way that avoids starving of competing TCP connections. Emulations and measurements of the algorithm suggest the efficiency of the scheme in utilizing network resources, decreasing loss ratios and its fairness towards competing TCP traffic.