3 Operating costs

Direct costs

In CHF million	1.01.–30.09.2021	1.01.–30.09.2020
Customer premises equipment and merchandise	731	664
Services purchased	528	455
Costs to obtain a contract	161	206
Costs to fulfill a contract	28	26
Network access costs of swiss subsidiaries	260	258
Network access costs of foreign subsidiaries	323	297
Total direct costs	2,031	1,906

Indirect costs

In CHF million	1.01.–30.09.2021	1.01.–30.09.2020
Salary and social security expenses	1,911	1,974
Other personnel expense	52	42
Total personnel expense	1,963	2,016

Information technology cost	184	179
Maintenance expense	200	181
Energy costs	91	87
Advertising and selling expenses	132	123
Consultancy expenses and freelance workforce	88	95
Administration expense	43	44
Allowances for receivables	54	70
Miscellaneous operating expenses	537	485
Total other operating expense	1,329	1,264

Capitalised self-constructed tangible and intangible assets	(320)	(268)
Own work for capitalised contract costs	(44)	(26)
Gain on sale of property, plant and equipment	(5)	(8)
Miscellaneous income	(76)	(39)
Total capitalised self-constructed assets and other income	(445)	(341)

Total indirect costs	2,847	2,939

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.