You need to increase the value of two limiting parameters: maxBufferSize and maxReceivedMessageSize. In my example these values are set to 5000000.
<?xml version="1.0" encoding="utf-8" ?>
<configuration>
<system.serviceModel>
<bindings>
<basicHttpBinding>
<binding
name="MyServiceConsumerBinding"
closeTimeout="00:01:00"
openTimeout="00:01:00"
receiveTimeout="00:10:00"
sendTimeout="00:01:00"
allowCookies="false"
bypassProxyOnLocal="false"
hostNameComparisonMode="StrongWildcard"
maxBufferSize="5000000"
maxBufferPoolSize="524288"
maxReceivedMessageSize="5000000"
messageEncoding="Text"
textEncoding="utf-8"
transferMode="Buffered"
useDefaultWebProxy="true">
<readerQuotas
Read more: Gunnar Peipman's ASP.NET blog