3 Operating costs

Direct costs

In CHF million	1.01.–30.09.2024	1.01.–30.09.2023
Customer premises equipment and merchandise	663	714
Services purchased	513	452
Costs to obtain a contract	167	158
Costs to fulfill a contract	56	66
Network access costs of swiss subsidiaries	168	188
Network access costs of foreign subsidiaries	574	545
Total direct costs	2,141	2,123

Indirect costs

In CHF million	1.01.–30.09.2024	1.01.–30.09.2023
Salary and social security expenses	2,013	1,940
Other personnel expense	35	44
Total personnel expense	2,048	1,984

Information technology cost	213	210
Maintenance expense	192	195
Energy costs	123	118
Advertising and selling expenses	114	115
Consultancy expenses and freelance workforce	73	64
Call centre services purchased	82	89
Administration expense	24	25
Allowances for receivables and contract assets	38	51
Miscellaneous operating expenses	256	286
Total other operating expense	1,115	1,153

Capitalised self-constructed tangible and intangible assets	(451)	(394)
Own work for capitalised contract costs	(28)	(39)
Gain on sale of property, plant and equipment	(7)	(5)
Miscellaneous income	(83)	(97)
Total capitalised self-constructed assets and other income	(569)	(535)

Total indirect costs	2,594	2,602

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.