Apple today began sending out notices to former MobileMe customers reminding them that their free 25 GB iCloud accounts will be reduced to 5 GB as of September 30. iCloud offers 5 GB of storage for free, but MobileMe customers received an additional 20 GB for free during the first year of iCloud's existence. The offer was initially good through through June 30, 2012, but Apple later extended the bonus through the end of September.
With the launch of the iPhone 5 this past weekend, upgraders who have elected to back up their devices to iCloud may find themselves suddenly over the 5 GB limit for free iCloud accounts if their previous iPhone is also being backed up to iCloud. Camera Roll in particular can be a significant contributor to storage needs for iCloud.Your iCloud storage will be reduced to 5 GB on 09/30/2012.
However, you are currently using more than 5 GB.
Unless you take action before your downgrade takes effect, backups to iCloud will stop, and apps will no longer be able to save documents to iCloud. You can either free up storage or cancel your downgrade to keep your current storage plan for another year.
Additional information for those seeking to keep their iCloud storage needs below 5 GB can be found in an Apple support document, while those interested in purchasing additional storage space can do so through their iOS device iCloud settings, System Preferences on a Mac, or iCloud Control Panel on a PC. Annual pricing is currently set at $20 for 10 GB, $40 for 20 GB, and $100 for 50 GB. All of the purchased amounts are added to the base 5 GB storage capacity.
Article Link: Apple Notifies Former MobileMe Customers of Impending iCloud Storage Downgrade