3 Operating costs

Direct costs

In CHF million	1.1.–30.6.2020	1.1.–30.6.2019
Customer premises equipment and merchandise	435	497
Services purchased	319	305
Costs to obtain a contract	140	169
Costs to fulfill a contract	22	8
Network access costs of swiss subsidiaries	141	163
Network access costs of foreign subsidiaries	193	197
Total direct costs	1,250	1,339

Indirect costs

In CHF million	1.1.–30.6.2020	1.1.–30.6.2019
Salary and social security expenses	1,350	1,378
Other personnel expense	29	33
Total personnel expense	1,379	1,411

Information technology cost	119	121
Maintenance expense	113	157
Energy costs	59	59
Advertising and selling expenses	86	103
Consultancy expenses and freelance workforce	63	75
Administration expense	31	49
Allowances for receivables	42	44
Miscellaneous operating expenses	310	340
Total other operating expense	823	948

Capitalised self-constructed tangible and intangible assets	(175)	(180)
Own work for capitalised contract costs	(16)	(32)
Gain on sale of property, plant and equipment	(1)	(4)
Miscellaneous income	(25)	(59)
Total capitalised self-constructed assets and other income	(217)	(275)

Total indirect costs	1,985	2,084

Capitalised costs of self-constructed property, plant and equipment 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.