Sunnyvale, Calif. - Yahoo has announced plans to offer unlimited e-mail storage to its customers starting in May, upping the ante in the free e-mail space where Google offers 2.8GB for free and Microsoft 2GB.

"We are giving them no reason to ever have to delete old e-mails," Yahoo co-founder David Filo told Reuters. "You can keep stuff forever."

The company said that on average its e-mail users are utilizing far less than 1GB of storage, but that more consumers are using e-mail to send large files like photos, music and videos.

Filo added that Yahoo is considering lifting storage caps on other services, such as its Flickr photo-sharing site.

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http://tinyurl.com/2gqysr (Reuters)