1 gig email space... you have that much so you don't ever have to del any important mails. You get a free built in search engine to search your mail by keywords just like the reg ones.
It probably will NOT stay free however. I saw a guy on a show the other day from google and he made mention of a 'small' charge down the road most probably. Makes sense... they'll literally need millions of hard drives in a very short time... plus the gear to run them.
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