3 Operating costs

Direct costs

In CHF million	1.1.–31.3.2020	1.1.–31.3.2019
Customer premises equipment and merchandise	219	277
Services purchased	160	156
Costs to obtain a contract	72	83
Costs to fulfill a contract	7	3
Network access costs of swiss subsidiaries	67	73
Network access costs of foreign subsidiaries	101	91
Total direct costs	626	683

Indirect costs

In CHF million	1.1.–31.3.2020	1.1.–31.3.2019
Salary and social security expenses	685	706
Other personnel expense	15	18
Total personnel expense	700	724

Information technology cost	59	59
Maintenance expense	54	74
Energy costs	29	29
Advertising and selling expenses	39	41
Consultancy expenses and freelance workforce	31	38
Administration expense	16	22
Allowances for receivables and contract assets	22	21
Miscellaneous operating expenses	157	164
Total other operating expense	407	448

Capitalised self-constructed tangible and intangible assets	(88)	(90)
Own work for capitalised contract costs	(9)	(16)
Gain on sale of property, plant and equipment	–	(3)
Miscellaneous income	(10)	(5)
Total capitalised self-constructed assets and other income	(107)	(114)

Total indirect costs	1,000	1,058

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