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3 Operating costs

Direct costs

In CHF million   1.1.–30.6.2021   1.1.–30.6.2020
Customer premises equipment and merchandise   465   403
Services purchased   354   319
Costs to obtain a contract   111   140
Costs to fulfill a contract   51   54
Network access costs of swiss subsidiaries   155   141
Network access costs of foreign subsidiaries   214   193
Total direct costs   1,350   1,250

Indirect costs

In CHF million   1.1.–30.6.2021   1.1.–30.6.2020
Salary and social security expenses   1,291   1,350
Other personnel expense   36   29
Total personnel expense   1,327   1,379
         
Information technology cost   119   119
Maintenance expense   127   113
Energy costs   61   59
Advertising and selling expenses   83   86
Consultancy expenses and freelance workforce   60   63
Administration expense   30   31
Allowances for receivables and contract assets   37   42
Miscellaneous operating expenses   349   310
Total other operating expense   866   823
         
Capitalised self-constructed tangible and intangible assets   (214)   (175)
Own work for capitalised contract costs   (29)   (16)
Gain on sale of property, plant and equipment   (3)   (1)
Miscellaneous income   (31)   (25)
Total capitalised self-constructed assets and other income   (277)   (217)
         
Total indirect costs   1,916   1,985

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.