3 Operating costs

Direct costs

In CHF million	1.01.–30.09.2023	1.01.–30.09.2022
Customer premises equipment and merchandise	714	683
Services purchased	544	526
Costs to obtain a contract	160	156
Costs to fulfill a contract	66	65
Network access costs of swiss subsidiaries	188	190
Network access costs of foreign subsidiaries	307	286
Total direct costs	1,979	1,906

Indirect costs

In CHF million	1.01.–30.09.2023	1.01.–30.09.2022
Salary and social security expenses	1,940	1,980
Other personnel expense	44	43
Total personnel expense	1,984	2,023

Information technology cost	195	190
Maintenance expense	186	220
Energy costs	117	106
Advertising and selling expenses	119	140
Consultancy expenses and freelance workforce	68	87
Call centre services purchased	89	97
Administration expense	30	37
Allowances for receivables and contract assets	51	32
Miscellaneous operating expenses	442	497
Total other operating expense	1,297	1,406

Capitalised self-constructed tangible and intangible assets	(394)	(355)
Own work for capitalised contract costs	(39)	(45)
Gain on sale of property, plant and equipment	(5)	(6)
Miscellaneous income	(97)	(91)
Total capitalised self-constructed assets and other income	(535)	(497)

Total indirect costs	2,746	2,932

Capitalised self-constructed tangible and intangible assets include personnel costs for the manufacture of technical installations, the construction of network infrastructure and the development of software for internal use.