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Hotmail to offer 250MB of free storage


Chris
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update Microsoft said Wednesday that it will boost storage limits in its Hotmail Web e-mail service, a move intended to counter similar steps taken by rivals Google and Yahoo.

The upgrade will increase Hotmail's free e-mail storage limits from 2 megabytes to 250MB and its paid e-mail service, which costs $19.95 a year, from 10MB to 2 gigabytes. The changes will begin in early July.

"With these new offers, storage will not be an issue for MSN Hotmail customers," Blake Irving, corporate vice president of communication services for MSN, said in a statement.

The storage follows similar announcements from Google and Yahoo. The storage boost started when Google announced in April that it plans to launch a new e-mail service called Gmail that will give people 1GB of storage for free. The service has attracted some controversy, because it will serve advertisements based on keywords found in the text of peoples' e-mail messages.

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