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9 Capitalized contract costs

millions of €

 

 

 

Dec. 31, 2021

Dec. 31, 2020

Costs of obtaining a contract

2,574

2,182

Costs to fulfill a contract

11

10

 

2,585

2,192

As of December 31, 2021, the carrying amount of capitalized contract costs stood at EUR 2.6 billion and was thus EUR 0.4 billion higher than at the end of the prior year. This increase was attributable in particular to a higher level of capitalized costs of obtaining a contract in postpaid customer business in the United States operating segment. The costs of obtaining a contract mainly include sales commissions paid to employees and third-party retailers in the direct and indirect sales channel. Overall, capitalized contract costs of EUR 1,832 million (2020: EUR 1,668 million) were written down on a straight-line basis over the estimated customer retention period.

Postpaid
Customers who pay for communication services after receiving them (usually on a monthly basis).
Glossary