Google has said it is giving Gmail subscribers 2Gb of free storage with possible plans for additional capacity in future. The 2Gb capacity takes Gmail beyond Yahoo! who last week responded to Gmail by quadrupling Yahoo! mail’s capacity to 1Gb. Yahoo! charges users $20 per year for 2Gb of storage.

Microsoft, meanwhile, is trailing both organizations, with users of its free Hotmail service receiving just 250Mb of storage while also charging an annual fee of $20 to receive 2Gb.