Microsoft, meanwhile, has quietly been expanding the storage it offers to at least some users of its free Hotmail service to 25 megabytes, up from the 2 that were available before. Users of these expanded accounts can buy still more room with two new "extra storage" plans: a $40-per-year service that includes 50 MB, and a $60-per-year option that allows 100 MB.
But other users continue to get only 2 MB of storage, and an "All About Hotmail" page at the site shows the old amount as well. A new account opened on Friday afternoon also was limited to 2 MB.
Microsoft spokeswoman Kathleen Callaghan said she had not heard of any free accounts getting more storage. But she did confirm that the company has plans in the works to beef up Hotmail: "Part of that will ensure that storage won't be an issue," she said.
Beat me too it. I was just about to post that same article.
It really does kill off the paid upgrade path for Hotmail to go to a bigger service. No real benefit now for the consumer.
The only time I would consider paying for an email account is if it had the advanced calendaring fuctionality that you can get from Exchange. The free / busy information, ability to view other peoples calendars that actually worked. Otherwise paid for web based email is a pipedream.