ICloud blocks the storage on my new iphone so that I can not download anthing

My iphone got stolen so I bought a new one. Today I wanted to install it with my apple ID and I signed up in iCloud which I did not have before. So all my photos are gone, I just want to have my contacts and iCal on my phone.. (which is is little data) but it shows in itunes that my phone is full with other data (I guess from icloud) so I am not even able to download any App. What can I do? The phone tells me to buy more storage on icloud but I do not want this I just want my storage capacity back so that I can use my iphone normally.!

Welcome to the Apple Community.
With your phone connected to iTunes and selected in the left hand pane of the iTunes window, work across the tabs across the top of the main window and uncheck any content you don't want on your phone, then click apply. Hopefully you will create enough space to do what you want.

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