Shareholders' Letter

12 Other operating expense
In CHF million 2010 2009 restated
Rental expense 350 366
Repair and maintenance expense 273 260
Loss on disposal of property, plant and equipment 7 12
Energy costs 110 112
Information technology cost 187 187
Advertising and selling expenses 222 199
Dealer commissions 386 400
Consultancy expenses and freelance employees 202 222
Allowances for receivables 132 138
General and administrative expenses 204 211
Miscellaneous operating expenses 437 402
Total other operating expense 2,510 2,509
In 2010, other operating expense includes a provision of EUR 70 million (CHF 102 million) recorded
in connection with VAT-related legal proceedings in Fastweb. See Note 28.
13 Capitalised costs of self-constructed assets and other income
In CHF million 2010 2009 restated
Capitalised self-constructed assets 234 278
Gain on sale of property, plant and equipment 24 16
Income from employment company Worklink (personnel hire) 10 12
Compensation payment from Telecom Italia in
connection with proceedings about unfair solicitation of customers – 30
Miscellaneous income 36 81
Total capitalised self-constructed assets and other income 304 417
Capitalised costs of self-constructed assets include personnel costs for the production of technical
installations, the creation of network infrastructures and the development of software for internal
use. In the second quarter of 2009, Fastweb recorded a non-recurring amount of EUR 20 million
(CHF 30 million) resulting from a compensation payment from Telecom Italia. This compensation
payment resulted from a settlement between Fastweb and Telecom Italia in connection with legal
proceedings concerning the unfair solicitation of customers.
Consolidated financial statements 168 | 169
Notes to the consolidated financial statements