Yes, it is true…
I got to know about his few minutes back…

Yahoo on Tuesday said it plans to once again boost its free e-mail storage limit–this time to 1GB, the same amount offered by archrival Google.

Beginning in late April, Yahoo will upgrade free users to the new storage limit of 1GB, up from its current 250MB. The company said it will take about two weeks for all Yahoo Mail users to see the boost.

More Info here on ZDNet

Yahoo is giving Google very tough competition and I would love to see more action from Yahoo! Waiting for Yahoo 360

It seems that Microsoft is not interested in all these things, they are expecting their hotmail users to be happy with 2 MB accounts (I know you can make it to 250 by changing country in profile and all..)

I think Yahoo! is much better than Google…I am not talking about Search Engine but overall company….I see yahoo more interactive with people than Google….