3 Operating costs
Direct costs
In CHF million |
1.1.– 30.9.2018 |
1.1.– 30.9.2017 |
||
|---|---|---|---|---|
| Customer premises equipment and merchandise | 819 | 774 | ||
| Services purchased | 421 | 341 | ||
| Costs of obtaining a contract | 250 | 208 | ||
| Costs to fulfill a contract | 30 | – | ||
| Traffic fees of foreign subsidiaries | 324 | 284 | ||
| International traffic fees | 201 | 223 | ||
| National traffic fees | 74 | 81 | ||
| Total direct costs | 2,119 | 1,911 |
Indirect costs
In CHF million |
1.1.– 30.9.2018 |
1.1.– 30.9.2017 |
||
|---|---|---|---|---|
| Salary and social security expenses | 2,053 | 2,136 | ||
| Other personnel expense | 45 | 50 | ||
| Total personnel expense | 2,098 | 2,186 | ||
| Information technology cost | 204 | 216 | ||
| Maintenance expense | 236 | 202 | ||
| Rental expense | 151 | 151 | ||
| Energy costs | 83 | 76 | ||
| Advertising and selling expenses | 147 | 164 | ||
| Consultancy expenses and freelance workforce | 131 | 126 | ||
| Administration expense | 73 | 81 | ||
| Allowances for receivables | 53 | 65 | ||
| Miscellaneous operating expenses | 484 | 439 | ||
| Total other operating expense | 1,562 | 1,520 | ||
| Capitalised self-constructed assets | (245) | (234) | ||
| Income from legal proceedings | – | (102) | ||
| Miscellaneous income | (76) | (31) | ||
| Total capitalised self-constructed assets and other income | (321) | (367) | ||
| Total indirect costs | 3,339 | 3,339 |
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.