Can I connect to my Hotmail account on the iPhone?
Yes you can. Set up a POP3 account for Hotmail on your iPhone by following these steps:
iOS 8 UPDATE: See this guide on How to Add a Hotmail Account to iPhone Mail.
iOS 7 UPDATE: Set up Hotmail to push new messages with Exchange. For instructions click here.
1. Navigate to Settings -> Mail, Contacts, Calendars -> Add Account...
2. Touch "Other"
3. Touch "Add Mail Account"