Scalable video coding is important in a number of applications where video needs to be decoded and displayed at a variety of resolution scales. It is more efficient than simulcasting, in which all desired resolution scales are coded totally independent of one another within the constraint of a fixed available bandwidth. In this paper, we focus on scalability using the frequency domain approach. We employ the framework proposed for the ongoing second phase of Motion Picture Experts Group (MPEG-2) standard to study the performance of one such scheme and investigate improvements aimed at increasing its efficiency. Practical issues related to multiplexing of encoded data of various resolution scales to facilitate decoding are considered. Simulations are performed to investigate the potential of a chosen frequency domain scheme. Various prospects and limitations are also discussed.