We present a new video coding technique to tradeoff frame rate and picture quality for low bit rate video coding. We show a model equation for selecting the optimal frame rate from the motion content of the source video. We can determine DCT quantization parameter (QP) using the frame rate and bit rate. For objective video quality measurement we propose a simple and effective error measure for skipped frames. The proposed method enhances the video quality up to 2 ㏈ over the H.263 TMN5 encoder.