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MSN Hotmail to Freeloaders: Pay Up
Microsoft announced it would turn off POP3 e-mail retrieval from
its free Hotmail service, effective July 16. The move is part of an aggressive
push to sell MSN Extra Storage e-mail services.
"We are sorry to inform you that as of July 16, 2002, we will no longer be
able to offer POP Mail Retrieval to our Hotmail users with a standard free account.
This means that you will not be able to aggregate e-mail from various accounts
into a single Hotmail account," Microsoft said in an e-mail to Hotmail users.
To continue using the POP3 feature, Microsoft said users must pony up $19.95
a year to access premium e-mail services. While basic Hotmail accounts remain
free, premium subscribers get 10 MB of Hotmail storage, which is about five
times what those who don't pay get. It would also allow Hotmail users to send
and receive larger attachmentsup to 1.5 MB per messageand up to
30 MB of MSN Communities storage, used primarily to store images on MSN's servers.
Subscribers also get an exemption from the account expiration policy, MSN
said.
The Hotmail announcement mirrors a recent move my mega-portal Yahoo to turn
off the free portion of its POP3 retrieval and e-mail forwarding services.
From April 24, free POP3 and Auto Mail Forwarding services for Yahoo subscribers
went the premium route, continuing the recent trend among bigger Internet companies
to convert freeloaders into paying customers.
Yahoo's price tag for the premium e-mail services is set at $29.99 and it
allows Microsoft Outlook, Eudora, or other POP3 clients to manage Yahoo Mail
and will also automatically forward mail to specified accounts. Yahoo's package
also allows POP3 users to send larger attachments of up to 5MB. The former limit
was 1.5MB.
Terra Lycos, another big player in the consumer portal space, also jumped in the
premium arena with the launch of a fee-based games on demand service and other
premium consumer offerings to offset the year-long slump in advertising revenue.
Other paid sites from Lycos include Tripod, Angelfire, MatchMaker, and Lycos
InSite.
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