3 Operating costs
Direct costs
| In CHF million | 1.1.–30.6.2018 | 1.1.–30.6.2017 | ||
|---|---|---|---|---|
| Customer premises equipment and merchandise | 544 | 511 | ||
| Services purchased | 279 | 210 | ||
| Costs of obtaining a contract | 172 | 141 | ||
| Costs to fulfill a contract | 24 | – | ||
| Traffic fees of foreign subsidiaries | 216 | 179 | ||
| International traffic fees | 111 | 117 | ||
| National traffic fees | 50 | 55 | ||
| Total direct costs | 1,396 | 1,213 |
Indirect costs
| In CHF million | 1.1.–30.6.2018 | 1.1.–30.6.2017 | ||
|---|---|---|---|---|
| Salary and social security expenses | 1,406 | 1,454 | ||
| Other personnel expense | 31 | 37 | ||
| Total personnel expense | 1,437 | 1,491 | ||
| Information technology cost | 136 | 143 | ||
| Maintenance expense | 150 | 128 | ||
| Rental expense | 100 | 101 | ||
| Energy costs | 55 | 54 | ||
| Advertising and selling expenses | 93 | 110 | ||
| Consultancy expenses and freelance workforce | 89 | 80 | ||
| Administration expense | 50 | 54 | ||
| Allowances for receivables | 37 | 44 | ||
| Miscellaneous operating expenses | 333 | 293 | ||
| Total other operating expense | 1,043 | 1,007 | ||
| Capitalised self-constructed assets | (167) | (158) | ||
| Gain on sale of property, plant and equipment | (4) | (1) | ||
| Miscellaneous income | (43) | (122) | ||
| Total capitalised self-constructed assets and other income | (214) | (281) | ||
| Total indirect costs | 2,266 | 2,217 |
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.