As anticipated, America Online launched its free, web-based email service on Monday, departing once more from its fee-based subscription model as it moves to add ad inventory and compete with free email accounts offered by Google, Yahoo and MSN. With the upcoming AOL free portal, the email effort is part of AOL's response to falling subscription numbers and an attempt to attract online advertising in a once-more booming market.

The AP reports that the free email service will provide users with two gigabytes of storage, along with protection against viruses and spam. It is being marketed as an extension of its popular AOL Instant Messenger, and users will be able to use their screen name for their email address.

AOL also announced that this summer it will begin offering unlimited email storage for regular AOL subscribers - its nearly 80 million email account holders will be able to save and store an unlimited number of emails, attachments and folders on AOL's servers, CNET reports. AOL said it is the first online service to offer unlimited email storage. Gmail offers more than 2 GB, Yahoo offers 1 GB, and Hotmail offers 250 MB.