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Not sure if 12MB is out of date. I remember less than a decade ago Yahoo's 6 MB was considered a gem. Now people are spoiled with Gmail and then several others that followed, but there are still quite a few providers out there whose free version has limited storage room: Safe Mail, Hushmail, Fastmail (unless they increased this recently??), Web.de, Mail.be, .... I guess the strategy is simple: let people have a taste for free and hope they switch to paid accounts in order to have a huge amount of storage.
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