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3 Operating costs

Direct costs

In CHF million   1.01.–30.09.2021   1.01.–30.09.2020
Customer premises equipment and merchandise   731   664
Services purchased   528   455
Costs to obtain a contract   161   206
Costs to fulfill a contract   28   26
Network access costs of swiss subsidiaries   260   258
Network access costs of foreign subsidiaries   323   297
Total direct costs   2,031   1,906

Indirect costs

In CHF million   1.01.–30.09.2021   1.01.–30.09.2020
Salary and social security expenses   1,911   1,974
Other personnel expense   52   42
Total personnel expense   1,963   2,016
         
Information technology cost   184   179
Maintenance expense   200   181
Energy costs   91   87
Advertising and selling expenses   132   123
Consultancy expenses and freelance workforce   88   95
Administration expense   43   44
Allowances for receivables   54   70
Miscellaneous operating expenses   537   485
Total other operating expense   1,329   1,264
         
Capitalised self-constructed tangible and intangible assets   (320)   (268)
Own work for capitalised contract costs   (44)   (26)
Gain on sale of property, plant and equipment   (5)   (8)
Miscellaneous income   (76)   (39)
Total capitalised self-constructed assets and other income   (445)   (341)
         
Total indirect costs   2,847   2,939

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.