Microsoft begins Hotmail upgrade

San Francisco: Microsoft began a massive upgrade of its Hotmail email system, hoping to match advances by competitors like Google and Yahoo.

The software giant said the upgrade represented the most significant improvements to Hotmail since it debuted in 1996 to become the pioneer of web-based email.

The new system allows Hotmail's 280 million users to easily sort their mail and enjoy enhanced security features.

It also boasts an expanded storage capacity and a built-in interface for mobile devices, right-click and drag-and-drop capabilities, preview pane customisation and auto-complete addressing.

Users of the web mail service will be able to access their account from Outlook, along with e-mail, contacts and folder synchronisation for free.

Microsoft said it has been testing the new system on select customers for two years, with more than 20 million users providing feedback.