3 Operating costs

Direct costs

In CHF million	1.1.–30.9.2022	1.1.–30.9.2021
Customer premises equipment and merchandise	683	681
Services purchased	526	528
Costs to obtain a contract	156	161
Costs to fulfill a contract	65	78
Network access costs of swiss subsidiaries	236	260
Network access costs of foreign subsidiaries	286	323
Total direct costs	1,952	2,031

Indirect costs

In CHF million	1.1.–30.9.2022	1.1.–30.9.2021
Salary and social security expenses	1,980	1,911
Other personnel expense	43	52
Total personnel expense	2,023	1,963

Information technology cost	190	184
Maintenance expense	220	200
Energy costs	106	91
Advertising and selling expenses	140	132
Call centre services purchased	97	104
Consultancy expenses and freelance workforce	87	88
Administration expense	37	43
Allowances for receivables and contract assets	32	54
Miscellaneous operating expenses	497	433
Total other operating expense	1,406	1,329

Capitalised self-constructed tangible and intangible assets	(355)	(320)
Own work for capitalised contract costs	(45)	(44)
Gain on sale of property, plant and equipment	(6)	(5)
Miscellaneous income	(91)	(76)
Total capitalised self-constructed assets and other income	(497)	(445)

Total indirect costs	2,932	2,847

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.