3 Operating costs

Direct costs

In CHF million	1.01.–31.03.2022	1.01.–31.03.2021
Customer premises equipment and merchandise	242	248
Services purchased	177	174
Costs to obtain a contract	44	63
Costs to fulfill a contract	22	25
Network access costs of swiss subsidiaries	62	76
Network access costs of foreign subsidiaries	96	94
Total direct costs	643	680

Indirect costs

In CHF million	1.01.–31.03.2022	1.01.–31.03.2021
Salary and social security expenses	683	695
Other personnel expense	14	21
Total personnel expense	697	716

Information technology cost	64	57
Maintenance expense	66	60
Energy costs	36	30
Advertising and selling expenses	49	42
Consultancy expenses and freelance workforce	29	31
Administration expense	12	15
Allowances for receivables and contract assets	16	21
Miscellaneous operating expenses	165	166
Total other operating expense	437	422

Capitalised self-constructed tangible and intangible assets	(117)	(106)
Own work for capitalised contract costs	(16)	(14)
Gain on sale of property, plant and equipment	–	(3)
Miscellaneous income	(13)	(16)
Total capitalised self-constructed assets and other income	(146)	(139)

Total indirect costs	988	999

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.