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.