3 Operating costs

Direct costs

In CHF million	1.01.–30.09.2020	1.01.–30.09.2019
Customer premises equipment and merchandise	664	744
Services purchased	455	446
Costs to obtain a contract	206	244
Costs to fulfill a contract	26	14
Network access costs of swiss subsidiaries	258	289
Network access costs of foreign subsidiaries	297	286
Total direct costs	1,906	2,023

Indirect costs

In CHF million	1.01.–30.09.2020	1.01.–30.09.2019
Salary and social security expenses	1,974	2,018
Other personnel expense	42	46
Total personnel expense	2,016	2,064

Information technology cost	179	185
Maintenance expense	181	233
Energy costs	87	87
Advertising and selling expenses	123	153
Consultancy expenses and freelance workforce	95	112
Administration expense	44	75
Allowances for receivables	70	60
Miscellaneous operating expenses	485	502
Total other operating expense	1,264	1,407

Capitalised self-constructed tangible and intangible assets	(268)	(267)
Own work for capitalised contract costs	(26)	(48)
Gain on sale of property, plant and equipment	(8)	(12)
Miscellaneous income	(39)	(71)
Total capitalised self-constructed assets and other income	(341)	(398)

Total indirect costs	2,939	3,073

Capitalised costs of 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.