"Customers will have a wide range of features in the new service," said BSNL CMD R K Upadhyay at the launch here.
The servers will be offered through the data centre of Data Infosys in Jaipur, he added.
All the 7.5 million BSNL broadband subscribers across the country would be able to avail the service.
They will get the basic e-mail box free which can be upgraded with advance account with services such as mobile app, mobile chat client, fax, SMS, group mail, advanced security and space limit by paying charges.
The CMD said the modernisation of BSNL telephone exchanges as well as expansion of GSM service was expected to be completed by the end of the current fiscal.
Ajay Data, CEO, Data Infosys, said there are more than 100 new features in its e-mail service.
"One of its most powerful features is Rights Management, which empowers the sender to control actions of deleting, forwarding, replying and printing of the e-mail by the recipient," Data said.
The users can also send SMS and e-mails in advance to people to whom it will be delivered at the desired time only.
Its virtual storage facility will allow files up to one GB to be attached/sent and the user can transmit 5,000 emails per day.
One Time Password, dual authentication for advanced security, image compression, multiple e-mail compose, personalised group e-mail, secured hidden attachments and encryption are among other prominent features, he said, adding that the project has made the company the country's largest e-mail service provider.