3 Operating costs

Direct costs

In CHF million	1.1.–31.3.2021	1.1.–31.3.2020
Customer premises equipment and merchandise	248	201
Services purchased	174	160
Costs to obtain a contract	63	72
Costs to fulfill a contract	25	25
Network access costs of swiss subsidiaries	76	67
Network access costs of foreign subsidiaries	94	101
Total direct costs	680	626

Indirect costs

In CHF million	1.1.–31.3.2021	1.1.–31.3.2020
Salary and social security expenses	695	685
Other personnel expense	21	15
Total personnel expense	716	700

Information technology cost	57	59
Maintenance expense	60	54
Energy costs	30	29
Advertising and selling expenses	42	39
Consultancy expenses and freelance workforce	31	31
Administration expense	15	16
Allowances for receivables and contract assets	21	22
Miscellaneous operating expenses	166	157
Total other operating expense	422	407

Capitalised self-constructed tangible and intangible assets	(106)	(88)
Own work for capitalised contract costs	(14)	(9)
Gain on sale of property, plant and equipment	(3)	–
Miscellaneous income	(16)	(10)
Total capitalised self-constructed assets and other income	(139)	(107)

Total indirect costs	999	1,000

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