Yahoo to launch 100MB free e-mail

Yahoo on Tuesday will begin offering 100MB of extra storage for users of its free e-mail service as part of an overall redesign of its mail service. Along with the 100MB boost, Yahoo will upgrade Mail Plus paid users to 2GB of storage and lower its yearly subscription from $29.99 a year to $19.99. Other a la carte services, such as POP e-mail forwarding, will consolidate under this plan and no longer be sold on a standalone basis.

The storage boost comes as no surprise. Yahoo arch-rival Google in April announced plans to launch a free e-mail service called "Gmail" with 1GB of storage. The upcoming launch of Gmail has changed the landscape for free-e-mail users, but also raised privacy concerns because of Google's decision to serve advertisements based on scanning the content of e-mail text. Yahoo executives last month announced the company would offer its own storage upgrade as part of overall changes to the service.

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