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.