3 Operating costs

Direct costs

In CHF million	1.1.–30.6.2021	1.1.–30.6.2020
Customer premises equipment and merchandise	465	403
Services purchased	354	319
Costs to obtain a contract	111	140
Costs to fulfill a contract	51	54
Network access costs of swiss subsidiaries	155	141
Network access costs of foreign subsidiaries	214	193
Total direct costs	1,350	1,250

Indirect costs

In CHF million	1.1.–30.6.2021	1.1.–30.6.2020
Salary and social security expenses	1,291	1,350
Other personnel expense	36	29
Total personnel expense	1,327	1,379

Information technology cost	119	119
Maintenance expense	127	113
Energy costs	61	59
Advertising and selling expenses	83	86
Consultancy expenses and freelance workforce	60	63
Administration expense	30	31
Allowances for receivables and contract assets	37	42
Miscellaneous operating expenses	349	310
Total other operating expense	866	823

Capitalised self-constructed tangible and intangible assets	(214)	(175)
Own work for capitalised contract costs	(29)	(16)
Gain on sale of property, plant and equipment	(3)	(1)
Miscellaneous income	(31)	(25)
Total capitalised self-constructed assets and other income	(277)	(217)

Total indirect costs	1,916	1,985

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