Hotmail to offer 250MB of free storage

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.

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