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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.