iCloud 5GBs Full During Restore

To all

i have recently changed my iPhone 5 as it was faulty and restored from iCloud. If my iCloud was at 3GBs before i restored to the new device, how does iCLoud work if i need to fully restore before iCloud then can start to back up my device. It doesnt haver the room within my free 5GBs. i dont want to delete the old back up until the new restore is complete but it seems it cant restore fully until it does.

the restore although looking like it has completely restored is still asking that i connec to Wifi to complete restore. i have. i dont know why it keeps saying this. how can i find out what it needs to still restore.

i assume the 2 are connnect.

please help...