The company said it has also enhanced its spam filtering system while limits on attachments will remain at 10MB. Dreamwiz expressed little concern with the costs of offering unlimited capacity, saying that users typically will not occupy more than 200MB a month.

According to the report, Dreamwiz said just last week that it was increasing the storage capacity of its free email services from 30MB to 228MB.

The latest launch of enlarged free email storage capacity comes after Google first announced in April that it would unveil a free email service with 1GB of storage capacity. Yahoo followed with an announcement that it would increase its storage capacity to levels comparable to Google and Terra Lycos (terralycos.com) said recently it would also offer 1GB of free email storage.