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3 Operating costs

Direct costs

In CHF million   1.1.–31.3.2018   1.1.–31.3.2017
Customer premises equipment and merchandise   306   263
Services purchased   112   107
Costs of obtaining a contract   87   65
Costs to fulfill a contract   13  
Traffic fees of foreign subsidiaries   114   90
International traffic fees   47   53
National traffic fees   25   28
Total direct costs   704   606

Indirect costs

In CHF million   1.1.–31.3.2018   1.1.–31.3.2017
Salary and social security expenses   713   737
Other personnel expense   10   16
Total personnel expense   723   753
         
Information technology cost   67   69
Maintenance expense   70   60
Rental expense   52   50
Energy costs   28   27
Advertising and selling expenses   40   54
Consultancy expenses and freelance workforce   43   38
Administration expense   27   28
Allowances for receivables   20   20
Miscellaneous operating expenses   156   144
Total other operating expense   503   490
         
Capitalised self-constructed assets   (83)   (80)
Gain on sale of property, plant and equipment   (1)   (1)
Miscellaneous income   (19)   (10)
Total capitalised self-constructed assets and other income   (103)   (91)
         
Total indirect costs   1,123   1,152

Capitalised costs of self-constructed assets include personnel costs for the production of technical installations, the construction of network infrastructures and the development of software for internal use.