3 Operating costs

Direct costs

In CHF million	1.1.–30.6.2025	1.1.–30.6.2024
Customer premises equipment and merchandise	672	450
Services purchased	549	335
Costs to obtain a contract	249	115
Costs to fulfill a contract	34	38
Network access costs	357	262
Allowances for receivables and contract assets	50	25
Total direct costs	1,911	1,225

Indirect costs

In CHF million	1.1.–30.6.2025	1.1.–30.6.2024
Salary and social security expenses	1,513	1,378
Other personnel expense	35	26
Total personnel expense	1,548	1,404

Information technology cost	167	143
Maintenance expense	144	122
Energy costs	219	81
Advertising and selling expenses	98	74
Consultancy expenses and freelance workforce	51	49
Rent network capacities	37	34
Call centre services purchased	71	57
Administration expense	21	16
Miscellaneous operating expenses	332	140
Total other operating expense	1,140	716

Capitalised self-constructed tangible and intangible assets	(345)	(301)
Own work for capitalised contract costs	(14)	(21)
Gain on sale of property, plant and equipment	(14)	(4)
Miscellaneous income	(70)	(56)
Total capitalised self-constructed assets and other income	(443)	(382)

Total indirect costs	2,245	1,738

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.