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In the first of a three part series; telecom reporter Catherine McLean looks at how wireless companies are trying to replace your camera, iPod, calendar and even TV with one gadget, the cellphone. Tomorrow, wireless limits, Wednesday, who will profit?

Schohaib Mehran doesn't just use his cellphone to call friends. It's also his address book, watch, agenda and alarm clock. And pretty soon, it could be the only device the 24-year-old employee at an investment firm needs to bring with him everywhere.

“The cellphone is really, really important because I use all of its applications,” Mr. Mehran says. “If I leave the house without my phone, who knows what can happen?” Cellphone manufacturers want the devices to be everything to people like Mr. Mehran. It started out with calls, but soon offered other features, including a calendar, text messaging capabilities, camera and Internet browser. Next up is a music player, TV, and possibly an electronic wallet.

“The phone is like a magnet that draws all the applications to it,” says Wade Oosterman, chief marketing officer at Telus Corp.

“That is because it's the one device that people consistently say they will carry with them at all times.”

And many players in the technology industry are racing to carve out a space for themselves in the fast-growing cellphone market, starting with entertainment-like ring tones.

Ring tones are no longer annoying computerized versions of well-known classical and pop tunes; they've evolved into high-quality downloads of tunes from chart-topping bands. Coldplay recently released its new single as a ring tone on Cingular Wireless's music service even before the CD was available for sale. And in another nod to their growing importance, Billboard magazine now has a chart of the hottest ring tones, with Candy Shop by 50 Cent recently topping it.

From ring tones, the cellphone is pushing further into the world of music. Models on the market already incorporate MP3 players, and more are on the way.

“The emergence of the personal music player is the hottest category of personal electronics, maybe right now, beside cellphones,” says David Woodcock, director of product management for mobile devices at Motorola Canada Ltd. “There's a good deal of alignment between people who carry cellphones and people who might want to listen to music. It just makes good sense to integrate those two together.”

Storage space has been a key challenge for the cellphone, but the industry is working on increasing the number of songs each phone can hold. However, cellphones still face a tough competitor — the trendy iPod, which can hold up to 5,000 songs. Some industry observers expect there will soon be cellphones on the market that will offer consumers a true alternative to separate music players, an attractive convenience factor.

“I think it's true that the best MP3 player in the world is better than a phone MP3 player, and the best digital camera is better than a digital camera phone,” Mr. Oosterman says. “But what you gain using your wireless device is that they're with you, whereas the others you have to remember to take with you.”

Mr. Mehran agrees. The Richmond Hill, Ont. resident has an MP3 player and likes the thought of having one inside his cellphone. “Instead of having two gadgets, you can just combine it into one,” he says. But he'll wait until cellphones can store more tunes.

Cellphones are also morphing into mini TV sets. At least three of Canada's carriers plan to offer TV service this year. But to get it, most Canadians will first have to buy a new phone that can play video clips, and then sign up for the TV service. Then they have to download the TV service onto their cellphone.

One of the main issues right now with TV and music phones is battery power. Instead of charging cellphones every few nights, subscribers of these new entertainment services will have to remember to charge them every day.

But that's not stopping the industry, which is developing other fun features, including magazines on cellphones.

Of course, the changing face of cellphones is good news for manufacturers because consumers will keep buying new ones to get the latest services. The wireless carriers also stand to benefit as more customers sign up for these new services, adding extra charges to their monthly bills.

But these new phones probably won't be a mainstream product until prices come down, industry observers say. Mr. Mehran certainly feels that way. While he is also interested in camera phones, he finds the rates for sending picture messages pricey. But he is betting prices will drop when other new services like TV come out. He isn't ready to sign up for TV service either — he says it is slow and too expensive.

With files from Mathew Ingram