Menu

3 Operating costs

Direct costs

In CHF million   1.1.–30.6.2020   1.1.–30.6.2019
Customer premises equipment and merchandise   435   497
Services purchased   319   305
Costs to obtain a contract   140   169
Costs to fulfill a contract   22   8
Network access costs of swiss subsidiaries   141   163
Network access costs of foreign subsidiaries   193   197
Total direct costs   1,250   1,339

Indirect costs

In CHF million   1.1.–30.6.2020   1.1.–30.6.2019
Salary and social security expenses   1,350   1,378
Other personnel expense   29   33
Total personnel expense   1,379   1,411
         
Information technology cost   119   121
Maintenance expense   113   157
Energy costs   59   59
Advertising and selling expenses   86   103
Consultancy expenses and freelance workforce   63   75
Administration expense   31   49
Allowances for receivables   42   44
Miscellaneous operating expenses   310   340
Total other operating expense   823   948
         
Capitalised self-constructed tangible and intangible assets   (175)   (180)
Own work for capitalised contract costs   (16)   (32)
Gain on sale of property, plant and equipment   (1)   (4)
Miscellaneous income   (25)   (59)
Total capitalised self-constructed assets and other income   (217)   (275)
         
Total indirect costs   1,985   2,084

Capitalised costs of self-constructed property, plant and equipment 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.