That is, every participant sends 3 separate video resolutions to the server: 720p, 480p and 180p (this may change due to bandwidth constraints). Then the server will only forward the approopriate layer to each other participant. So, if you are only seeing me in a thumbnail it will only forward the 180p layer. If I become the active speaker (or you choose to pin me to the large view) the server will immediately switch to forwarding the 720p layer.
In addtion, we use SVC with temporal layers, so thumbnails may be given at just 15fps or even less.
We do have a trick up our sleeve (but IIRC it haad to be disabled for the time being) which involves disabling the ssimulcast layers that nobody is requesting. That is, if nobody iss seeing me in the large view, why send the 720p layer at all?
Hope that helps!