Cao said China would launch another 10 satellites within the next two years. The 12-satellite system could cover China and neighboring regions for the first phase of the Compass program.

But it would take far more time to carry out the second phase, under which Compass would expand into a global network, he said. That would require at least 30 satellites.

A military official, who would only give her surname as Tang, said the Compass system would eventually include 35 satellites.

"The European Union's Galileo Positioning System cost more than3 billion Euros," Cao said. That amount is equivalent to 3.9 billion U.S. dollars).

In light of that figure, "I think the Compass system might cost China several dozen billion yuan," Cao added. "The first phase alone could cost more than 10 billion yuan," Cao said.

China is one of a few countries able to develop a navigation satellite system. By 2007, China had successfully put four experimental navigation satellites into orbit, forming the Beidou ("Big Dipper") system, which can provide positioning accuracy within 20m.

The Beidou-based Compass system is expected to rival the U.S.-developed GPS, the EU's GPS and Russia's Global Navigation Satellite System, but Cao added: "It is hard to say which one is better for now."

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Editor:Yang Jie