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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.