3 Operating costs

Direct costs

In CHF million	1.01.–31.03.2023	1.01.–31.03.2022
Customer premises equipment and merchandise	260	242
Services purchased	179	177
Costs to obtain a contract	50	44
Costs to fulfill a contract	21	22
Network access costs of swiss subsidiaries	49	48
Network access costs of foreign subsidiaries	102	96
Total direct costs	661	629

Indirect costs

In CHF million	1.01.–31.03.2023	1.01.–31.03.2022
Salary and social security expenses	662	683
Other personnel expense	18	14
Total personnel expense	680	697

Information technology cost	62	64
Maintenance expense	50	66
Energy costs	37	36
Advertising and selling expenses	38	49
Consultancy expenses and freelance workforce	24	29
Call centre services purchased	32	34
Administration expense	12	12
Allowances for receivables and contract assets	17	16
Miscellaneous operating expenses	134	131
Total other operating expense	406	437

Capitalised self-constructed tangible and intangible assets	(132)	(117)
Own work for capitalised contract costs	(12)	(16)
Gain on sale of property, plant and equipment	(1)	–
Miscellaneous income	(19)	(13)
Total capitalised self-constructed assets and other income	(164)	(146)

Total indirect costs	922	988

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.