3 Operating costs

Direct costs

In CHF million	1.1.–30.6.2023	1.1.–30.6.2022
Customer premises equipment and merchandise	480	451
Services purchased	357	356
Costs to obtain a contract	106	99
Costs to fulfill a contract	43	48
Network access costs of swiss subsidiaries	104	104
Network access costs of foreign subsidiaries	198	187
Total direct costs	1,288	1,245

Indirect costs

In CHF million	1.1.–30.6.2023	1.1.–30.6.2022
Salary and social security expenses	1,318	1,346
Other personnel expense	32	27
Total personnel expense	1,350	1,373

Information technology cost	128	130
Maintenance expense	114	143
Energy costs	75	72
Advertising and selling expenses	78	101
Consultancy expenses and freelance workforce	46	59
Call centre services purchased	61	66
Administration expense	20	25
Allowances for receivables and contract assets	35	30
Miscellaneous operating expenses	310	376
Total other operating expense	867	1,002

Capitalised self-constructed tangible and intangible assets	(261)	(237)
Own work for capitalised contract costs	(27)	(32)
Gain on sale of property, plant and equipment	(4)	(3)
Miscellaneous income	(66)	(72)
Total capitalised self-constructed assets and other income	(358)	(344)

Total indirect costs	1,859	2,031

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.