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3 Operating costs

Direct costs

In CHF million   1.1.–31.3.2020   1.1.–31.3.2019
Customer premises equipment and merchandise   219   277
Services purchased   160   156
Costs to obtain a contract   72   83
Costs to fulfill a contract   7   3
Network access costs of swiss subsidiaries   67   73
Network access costs of foreign subsidiaries   101   91
Total direct costs   626   683

Indirect costs

In CHF million   1.1.–31.3.2020   1.1.–31.3.2019
Salary and social security expenses   685   706
Other personnel expense   15   18
Total personnel expense   700   724
         
Information technology cost   59   59
Maintenance expense   54   74
Energy costs   29   29
Advertising and selling expenses   39   41
Consultancy expenses and freelance workforce   31   38
Administration expense   16   22
Allowances for receivables and contract assets   22   21
Miscellaneous operating expenses   157   164
Total other operating expense   407   448
         
Capitalised self-constructed tangible and intangible assets   (88)   (90)
Own work for capitalised contract costs   (9)   (16)
Gain on sale of property, plant and equipment     (3)
Miscellaneous income   (10)   (5)
Total capitalised self-constructed assets and other income   (107)   (114)
         
Total indirect costs   1,000   1,058

Capitalised self-constructed tangible and intangible assets include personnel expenses for the manufacture of technical installations, the construction of network infrastructure and the development of software for internal use.