3 Operating costs

Direct costs

In CHF million	1.1.–30.9.2019	1.1.–30.9.2018
Customer premises equipment and merchandise	744	819
Services purchased	446	421
Costs to obtain a contract	244	250
Costs to fulfill a contract	14	30
Traffic fees of foreign subsidiaries	286	324
International traffic fees	221	201
National traffic fees	68	74
Total direct costs	2,023	2,119

Indirect costs

In CHF million	1.1.–30.9.2019	1.1.–30.9.2018
Salary and social security expenses	2,018	2,053
Other personnel expense	46	45
Total personnel expense	2,064	2,098

Information technology cost	185	204
Maintenance expense	233	236
Rental expense	–	150
Energy costs	87	83
Advertising and selling expenses	153	147
Consultancy expenses and freelance workforce	112	131
Administration expense	75	73
Allowances for receivables	60	53
Miscellaneous operating expenses	502	485
Total other operating expense	1,407	1,562

Capitalised self-constructed assets	(267)	(245)
Gain on sale of property, plant and equipment	(12)	(7)
Miscellaneous income	(119)	(69)
Total capitalised self-constructed assets and other income	(398)	(321)

Total indirect costs	3,073	3,339

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.