3 Operating costs

Direct costs

In CHF million	1.1.–31.3.2025	1.1.–31.3.2024
Customer premises equipment and merchandise	342	222
Services purchased	276	145
Costs to obtain a contract	126	57
Costs to fulfill a contract	17	20
Network access costs	178	137
Allowances for receivables and contract assets	29	13
Total direct costs	968	594

Indirect costs

In CHF million	1.1.–31.3.2025	1.1.–31.3.2024
Salary and social security expenses	766	689
Other personnel expense	14	14
Total personnel expense	780	703

Information technology cost	76	70
Maintenance expense	66	57
Energy costs	110	42
Advertising and selling expenses	48	33
Consultancy expenses and freelance workforce	21	25
Rent network capacities	15	18
Call centre services purchased	36	28
Administration expense	11	8
Miscellaneous operating expenses	156	68
Total other operating expense	539	349

Capitalised self-constructed tangible and intangible assets	(176)	(147)
Own work for capitalised contract costs	(7)	(11)
Gain on sale of property, plant and equipment	(9)	(2)
Miscellaneous income	(22)	(42)
Total capitalised self-constructed assets and other income	(214)	(202)

Total indirect costs	1,105	850

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