For those of us constantly frustrated by the tiny storage space allowed by the web mail services like Hotmail, Google is coming to the rescue. Their new GMail service will provide one gigabyte of storage. Charging people for extra storage is a key revenue stream for Hotmail. IN Australia ninemsn charges $37.95 for 10 meg of email storage – that’s 1/100 of what GMail will offer for free. Not hard to see that GMail could get real popular real fast.

But there’s some concern out there after it was realised that Google was intending to run advertisements in the mail window, based on the words in the emails. Some privacy advocates are not altogether happy. And Google is now reportedly reviewing its position.