The world's biggest e-mail service is scrapping its free e-mail storage limit of 1 gigabyte, or about a billion bytes of data, responding to explosive growth in attachment sizes as people share ever more photos, music and videos via e-mail. Microsoft (Charts) has a 2 gigabyte free e-mail storage limit, while Google (Charts) caps its Gmail service at 2.8 gigabytes.

"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."

Officials said the decision to remove e-mail storage limits reflects the plunging cost of storage as new personal computers store up to a trillion bytes of data and owners of 80-gigabyte iPods can carry 100 hours of video in their pockets.

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