3 Operating costs

Direct costs

In CHF million	1.1.–30.9.2025	1.1.–30.9.2024
Customer premises equipment and merchandise	1,022	663
Services purchased	815	500
Costs to obtain a contract	370	167
Costs to fulfill a contract	52	56
Network access costs	540	435
Allowances for receivables and contract assets	74	38
Total direct costs	2,873	1,859

Indirect costs

In CHF million	1.1.–30.9.2025	1.1.–30.9.2024
Salary and social security expenses	2,216	2,013
Other personnel expense	65	35
Total personnel expense	2,281	2,048

Information technology cost	252	213
Maintenance expense	223	192
Energy costs	330	123
Advertising and selling expenses	149	114
Consultancy expenses and freelance workforce	81	73
Rent network capacities	54	51
Call centre services purchased	107	82
Administration expense	30	24
Miscellaneous operating expenses	526	204
Total other operating expense	1,752	1,076

Capitalised self-constructed tangible and intangible assets	(502)	(451)
Own work for capitalised contract costs	(23)	(28)
Gain on sale of property, plant and equipment	(19)	(7)
Miscellaneous income	(186)	(83)
Total capitalised self-constructed assets and other income	(730)	(569)

Total indirect costs	3,303	2,555

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.