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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.