3 Operating costs

Direct costs

In CHF million	1.1.–31.3.2019	1.1.–31.3.2018
Customer premises equipment and merchandise	277	306
Services purchased	156	112
Costs of obtaining a contract	83	87
Costs to fulfill a contract	3	13
Traffic fees of foreign subsidiaries	91	114
International traffic fees	50	47
National traffic fees	23	25
Total direct costs	683	704

Indirect costs

In CHF million	1.1.–31.3.2019	1.1.–31.3.2018
Salary and social security expenses	706	713
Other personnel expense	18	10
Total personnel expense	724	723

Information technology cost	59	67
Maintenance expense	74	70
Rental expense	–	52
Energy costs	29	28
Advertising and selling expenses	41	40
Consultancy expenses and freelance workforce	38	43
Administration expense	22	27
Allowances for receivables	21	20
Miscellaneous operating expenses	164	156
Total other operating expense	448	503

Capitalised self-constructed assets	(90)	(83)
Gain on sale of property, plant and equipment	(3)	(1)
Miscellaneous income	(21)	(19)
Total capitalised self-constructed assets and other income	(114)	(103)

Total indirect costs	1,058	1,123

Capitalised costs of self-constructed assets include personnel costs for the production of technical installations, the construction of network infrastructures and the development of software for internal use.