3 Operating costs

Direct costs

In CHF million 1.1.–31.3.2026 1.1.–31.3.2025
Customer premises equipment and merchandise 333 342
Services purchased 246 276
Costs to obtain a contract 127 126
Costs to fulfill a contract 6 17
Network access costs 130 178
Allowances for receivables and contract assets 25 29
Total direct costs 868 968

Indirect costs

In CHF million 1.1.–31.3.2026 1.1.–31.3.2025
Salary and social security expenses 748 766
Other personnel expense 13 14
Total personnel expense 762 780
Information technology cost 90 76
Maintenance expense 63 66
Energy costs 111 110
Advertising and selling expenses 39 48
Consultancy expenses and freelance workforce 21 21
Network capacities rental 15 15
Call centre services purchased 32 36
Administration expense 10 11
Miscellaneous operating expenses 138 156
Total other operating expense 518 539
Capitalised self-constructed tangible and intangible assets (172) (176)
Own work for capitalised contract costs (6) (7)
Gain on sale of property, plant and equipment (3) (9)
Miscellaneous income (47) (22)
Total capitalised self-constructed assets and other income (228) (214)
Total indirect costs 1,051 1,105

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.