3 Operating costs

Direct costs

In CHF million	1.1.–30.6.2019	1.1.–30.6.2018
Customer premises equipment and merchandise	497	544
Services purchased	305	280
Costs to obtain a contract	169	172
Costs to fulfill a contract	8	24
Traffic fees of foreign subsidiaries	197	216
International traffic fees	118	111
National traffic fees	45	49
Total direct costs	1,339	1,396

Indirect costs

In CHF million	1.1.–30.6.2019	1.1.–30.6.2018
Salary and social security expenses	1,378	1,406
Other personnel expense	33	31
Total personnel expense	1,411	1,437

Information technology cost	121	136
Maintenance expense	157	150
Rental expense	–	99
Energy costs	59	55
Advertising and selling expenses	103	93
Consultancy expenses and freelance workforce	75	89
Administration expense	49	50
Allowances for receivables	44	37
Miscellaneous operating expenses	340	334
Total other operating expense	948	1,043

Capitalised self-constructed assets	(180)	(167)
Gain on sale of property, plant and equipment	(4)	(4)
Miscellaneous income	(91)	(43)
Total capitalised self-constructed assets and other income	(275)	(214)

Total indirect costs	2,084	2,266

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