WordPress.com increased the free file storage for the blogs hosted at wordpress.com from 50MB to 3GB. Its competitor Blogger only gives 1GB of space to upload photos. This is a great addition for wordpress.com and i am sure users will love this free space.
If you want to upload movies or MP3’s you need to purchase a space upgrade. One can purchase space upgrades at $50/year for 15GB and $90/year for 25GB.
There is no limit on bandwidth so you don’t have to bother about the traffic.