Recently rediff.com had upgraded its email service capacity to unlimited. Now, Yahoo! is planning to upgrade its 1 GB email capacity to unlimited for its quarter of a billion users. Hotmail is providing a capacity of 2 GB on its email service, while GMail caps its capacity at 2.8 GB.

“We are giving them no reason to ever have to delete old e-mails,” Yahoo co-founder David Filo said in a phone interview. “You can keep stuff forever.”