All Internet traffic is TCP/IP (Transmission Control Protocol/Internet Protocol). Everything you send to Hotmail, and everything they send back, is transported over TCP/IP.
The same is true for any web site, Instant Messaging application, music download, etc.
The rare exception is Voice over IP (like Vonage) which uses UDP/IP. It's less reliable than TCP, but it's a simpler protocol and works well for the zillions of tiny packets that make up a phone call.
How does TCP/IP affect Hotmail?
TCP/IP is used to transport Hotmail
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