3 Operating costs

Direct costs

In CHF million	1.01.–30.06.2024	1.01.–30.06.2023
Customer premises equipment and merchandise	450	480
Services purchased	343	293
Costs to obtain a contract	115	106
Costs to fulfill a contract	38	43
Network access costs of swiss subsidiaries	97	104
Network access costs of foreign subsidiaries	369	358
Total direct costs	1,412	1,384

Indirect costs

In CHF million	1.01.–30.06.2024	1.01.–30.06.2023
Salary and social security expenses	1,378	1,318
Other personnel expense	26	32
Total personnel expense	1,404	1,350

Information technology cost	143	138
Maintenance expense	122	121
Energy costs	81	75
Advertising and selling expenses	74	76
Consultancy expenses and freelance workforce	49	43
Call centre services purchased	57	61
Administration expense	16	16
Allowances for receivables and contract assets	25	35
Miscellaneous operating expenses	174	206
Total other operating expense	741	771

Capitalised self-constructed tangible and intangible assets	(301)	(261)
Own work for capitalised contract costs	(21)	(27)
Gain on sale of property, plant and equipment	(4)	(4)
Miscellaneous income	(56)	(66)
Total capitalised self-constructed assets and other income	(382)	(358)

Total indirect costs	1,763	1,763

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.