3 Operating costs

Direct costs

In CHF million	1.01.–31.03.2024	1.01.–31.03.2023
Customer premises equipment and merchandise	223	260
Services purchased	149	143
Costs to obtain a contract	57	50
Costs to fulfill a contract	20	21
Network access costs of swiss subsidiaries	42	49
Network access costs of foreign subsidiaries	194	187
Total direct costs	685	710

Indirect costs

In CHF million	1.01.–31.03.2024	1.01.–31.03.2023
Salary and social security expenses	689	662
Other personnel expense	14	18
Total personnel expense	703	680

Information technology cost	70	67
Maintenance expense	57	53
Energy costs	42	37
Advertising and selling expenses	33	36
Consultancy expenses and freelance workforce	25	22
Call centre services purchased	28	32
Administration expense	8	10
Allowances for receivables and contract assets	13	17
Miscellaneous operating expenses	86	83
Total other operating expense	362	357

Capitalised self-constructed tangible and intangible assets	(147)	(132)
Own work for capitalised contract costs	(11)	(12)
Gain on sale of property, plant and equipment	(2)	(1)
Miscellaneous income	(42)	(19)
Total capitalised self-constructed assets and other income	(202)	(164)

Total indirect costs	863	873

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.