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| ý |   | ANNUAL      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT      OF 1934     |
|--------|--------|----------------------------------------------------------------------------------------------------|
|   |   | For      the fiscal year ended December 31, 2007                                              |
|   |   | OR                                                                                                 |
| o      |   | TRANSITION      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |

| Delaware                                                 |   | 93-0976127                     |
|----------------------------------------------------------|--------|--------------------------------|
| (State      or Other Jurisdiction of                     |   | (I.R.S.      Employer          |
| Incorporation      or Organization)                      |   | Identification      No.)  |
| 12010      Sunset Hills Road, 9th      Floor, Reston, VA |   | 20190                          |
| (Address      of Principal Executive Offices)            |   | (Zip      Code)                |

| Common      Stock, $0.01 par value |   | The      NASDAQ Global Market                   |
|------------------------------------|--------|-------------------------------------------------|
| (Title      of Each Class)         |   | (Name      of Each Exchange on WhichRegistered) |

|   |                                             | Large      accelerated filer   ̈ |   | Accelerated      filer  þ         |
|--------|--------------------------------------------------|------------------------------------------------|--------|--------------------------------------------------|
|   |                                             | Non-accelerated      filer   ̈   |   | Smaller      reporting company   ̈ |
|   | (Do      not check if smaller reporting company) |                                           |

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| Ÿ   | each      person known by us to be a beneficial owner of five percent (5%) or more      of our common stock; |
|--------------------|--------------------------------------------------------------------------------------------------------------|

| Ÿ   | each      current director |
|--------------------|----------------------------|

| Ÿ   | each      executive officer named in the summary compensation table in Item 11 of      this Annual Report; |
|--------------------|------------------------------------------------------------------------------------------------------------|

| Ÿ   | each      current executive officer; and |
|--------------------|------------------------------------------|

| Ÿ   | all      current directors and executive officers as a  group. |
|--------------------|----------------------------------------------------------------|

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| Name                                                                                    | Shares      Owned | Percent of      Class+ |
|-----------------------------------------------------------------------------------------|-------------------|------------------------|
|                                                                                    |              |                   |
| Neil      Hazard (1)                                                               | 231,333           | *                      |
| Jeffrey      Epstein (1)                                                                | 61,075            | *                      |
| Dennis      Matheson (1)                                                           | 180,167           | *                      |
| David      Andonian (Director) (2)                                                 | 36,000            | *                      |
| William      Freeman (Director) (1)                                                     | 35,600            | *                      |
| David      Rayner (Director)                                                            | --                | --                     |
| Jacques      Leduc (Director) (2)                                                  | 36,000            | *                      |
| Eugene      Davis (Director)                                                            | --                | --                     |
| David      Meltzer (Director) (3)                                                  | 31,000            | *                      |
| Dean      Olmstead (Director)                                                           | --                | --                     |
| Current      Directors and Officers as a Group (10 persons)  Other      5% Stockholders | 611,175           | *                      |
| Harbert      Management Corporation (4)                                                 | 40,921,029        | 42.9                   |
| EchoStar      Corporation (5)                                                           | 38,970,000        | 30.0                   |
| Solus      Alternative Asset Management LP (6)                                          | 11,131,146        | 11.7                   |
| Intrepid      Capital Advisors (7)                                                      | 5,813,845         | 6.4                    |
| Tudor      Investment Corporation (8)                                                   | 5,687,814         | 6.3                    |
| Goldman      Sachs (9)                                                                  | 4,608,469         | 5.1                    |
| BCE,      Inc. (10)                                                                     | 4,531,213         | 5.0                    |

| (1) | Share      ownership reflects options to purchase shares of our common stock (“Common      Shares”)      exercisable within 60 days of the date  hereof. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Includes      12,000 shares of vested restricted Common Shares, 18,000 non-vested      restricted Common Shares and 6,000 options to purchase Common      Shares.  The non-vested restricted Common Shares are subject to      repurchase by the Company in the event of termination of      service. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Includes      10,000 vested restricted Common Shares, 15,000 non-vested restricted      Common Shares and 6,000 options to purchase Common Shares.  The      non-vested restricted Common Shares are subject to repurchase by the      Company in the event of termination of  service. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Funds      Affiliated with Harbert Management Corporation.   Pursuant to a      Schedule 13D/A dated February 7, 2008, as filed with the Commission,      Harbert Management Corporation reported that as of February 5, 2008, it      had shared voting and dispositive power over 40,921,029 Common Shares,      including 1,886 shares issuable upon exercise of warrants and 4,405,170      shares issuable upon conversion of shares of Series B Preferred      Stock.  Each of Harbinger Capital Partners Master Fund I, Ltd.,      Harbinger Capital Partners Offshore Manager, L.L.C. and HMC Investors,      L.L.C. reported shared voting and dispositive power over 29,909,389 Common      Shares; Harbinger Capital Partners Offshore Manager, L.L.C. and HMC      Investors, L.L.C. each specifically disclaimed beneficial ownership in      such shares except to the extent of its pecuniary interest      therein.  Each of Harbinger Capital Partners Special Situations      Fund, L.P., Harbinger Capital Partners Special Situations GP, LLC and      HMC - New York, Inc. reported shared voting and dispositive power over      11,011,640 Common Shares; each specifically disclaimed beneficial      ownership in such shares except to the extent of its pecuniary interest      therein.  Philip Falcone, Raymond J. Harbert and Michael D. Luce      reported shared voting and dispositive power over 40,921,029 Common      Shares; each specifically disclaimed beneficial ownership in such shares      except to the extent of his pecuniary interest therein.  The      mailing address of Harbert Management Corporation is One Riverchase      Parkway South, Birmingham,  Alabama 35244. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Assumes      conversion of $50,000,000 of Exchangeable Notes into 8,970,000 Common      Shares at the current exchange ratio of 179.4.  Also assumes      that the Company exercises its option to purchase the 1.4 GHz Band      Spectrum from EchoStar in exchange for 30,000,000 Common      Shares.  The mailing address for EchoStar Corporation is 90      Inverness Circle E, Englewood,  CO  80112. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | Solus      Alternative Asset Management LP.   Assumes conversion of      $22,500,000 of Exchangeable Notes into 4,036,500 Common Shares.        Pursuant to a Schedule 13G/A filed on February 14, 2008, as      filed with the Commission, Solus Alternative Asset Management LP reported      that as of December 31, 2007 its share ownership includes 6,725,000 Common      Shares and 1,860,000 Common Shares issuable upon conversion of shares of      Series B Preferred Stock.  The mailing address for Solus      Alternative Asset Management LP is 430 Park Avenue, New York,      NY  10022. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (7) | Funds      affiliated with Intrepid Capital Advisors LLC and Intrepid Fund Management      LLC.  Pursuant to a Schedule 13G/A filed on February 14, 2008,      as filed with the Commission, as of December 31, 2007 Intrepid Capital      Advisors, as the general partner of Intrepid Capital Fund (QP), L.P., and      Bluenose Capital Fund (QP), L.P beneficially owned 2,265,131 Common      Shares.  Additionally, Intrepid Fund Management, LLC, the      investment manager of Intrepid Capital Fund (Offshore) Ltd., Intrepid      Enhanced Alpha Master Fund, Ltd., and Bluenose Capital Fund (Offshore) Ltd      beneficially owned 3,548,714 Common Shares.  Steven Shapiro,      individually, as Manager of Intrepid Capital Advisors, LLC, and Intrepid      Fund Management LLC beneficially owns 5,813,845 Common      Shares.  The mailing address of Intrepid Capital Advisors LLC is      360 Madison Ave., 21st      Floor, New York,NY  10017. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| (8) | Funds      Affiliated with Tudor Investment Corporation.  Pursuant to a      Schedule 13G/A dated February 13, 2008, as filed with the Commission,      Tudor Investment Corporation reported that as of December 31, 2007, it had      shared voting and dispositive power over 5,687,814 Common      Shares.  The Common Shares reported herein as beneficially owned      are owned directly by TPT (404,524 shares), Altar Rock (43,305 shares),      Raptor Portfolio (4,242,095 shares) and BVI Portfolio (997,890      shares).  Because TIC is the sole general partner of Altar Rock      and provides investment advisory services to Raptor Portfolio and BVI      Portfolio, TIC may be deemed beneficially to own the Common Shares owned      by each of Raptor Portfolio and BVI Portfolio.  TIC expressly      disclaims such beneficial ownership.  In addition, because Mr.      Jones is the controlling shareholder of TIC and the indirect controlling      equity holder of TPT, Mr. Jones may be deemed to beneficially own the      Common Shares deemed beneficially owned by TIC and TPT.  Mr.      Jones expressly disclaims such beneficial ownership.  Because      Mr. Pallotta is the portfolio manager of TIC and TPT responsible for      investment decisions with respect to the Common Shares reported herein,      Mr. Pallotta may be deemed to beneficially own the Common Shares deemed      beneficially owned by TIC and TPT.  Mr. Pallotta expressly      disclaims such beneficial ownership.  The Common Shares reported      herein as beneficially owned by Mr. Pallotta are owned directly by Mr.      Pallotta (450,000 shares) and Mr.  Pallotta’s spouse (3,640      shares).  Mr. Pallotta expressly disclaims beneficial ownership      of any shares not directly owned by him.  The mailing address of      Tudor Investment Corporation is 1275 King Street, Greenwich,      Connecticut 06831. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (9) | Funds      affiliated with Goldman Sachs.  Pursuant to a Schedule 13G filed      on February 11, 2008, as filed with the Commission, 4,608,469 Common      Shares were beneficially owned by Global Securities Services, a separate      business unit within and across Goldman, Sachs & Co. and Goldman Sachs      International, each of which is a direct or indirect subsidiary of The      Goldman Sachs Group, Inc. (“GSS”),  resulting from GSS holding      title to such securities as a secured creditor under a transfer of title      financial collateral arrangement under English Law.  This filing      did not reflect securities, if any, beneficially owned by any other      separate business units of Goldman, Sachs & Co, Goldman Sachs      International and/or GSS whose ownership is disaggregated from that of GSS      in accordance with the SEC Release No. 34-39538.  GSS disclaims      beneficial ownership of any securities beneficially owned by any client      accounts with respect to which GSS or its employees have voting or      investment discretion, or both.  The mailing address of Goldman,      Sachs & Co. and The Goldman Sachs Group, Inc. is 85 Broad Street, New      York, NY 10004 and the mailing address of Goldman Sachs International is      133 Fleet Street, London EC4A ZBB,England. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (10) | BCE,      Inc.  Pursuant to a Schedule 13D/A dated March 7, 2007, as filed      with the Commission, BCE, Inc. reported that as of March 7, 2007, it had      sole voting and dispositive power over 4,531,213 Common Shares, and that      its mailing address is 1000, rue de la Gauchetiere Ouest, Bureau 3700,      Montreal, Quebec H3B 4Y7,Canada. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | TERRESTAR      CORPORATION               |                    |
|--------|------------------------------------------|-------------------------|
|   |                                     |                    |
|   |                                     |                    |
|   | By                                       | /s/ Jeffrey W. Epstein  |   |
|   |                                     | Jeffrey      W. Epstein |   |
|   |                                     | President               |   |
|   |                                     |                    |
|   | Date:   February      26, 2009 |                    |

|  /s/      Jeffrey W. Epstein                                                                                                                       |   | President                                         |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------|--------|
| Jeffrey      W. Epstein                                                                                                                                 |   | (principal      executive officer)                |   |
|                                                                                                                                                    |   |                                              |   |
| /s/      Vincent Loiacono                                                                                                                               |   | Chief      Accounting Officer                     |   |
| Vincent      Loiacono                                                                                                                                   |   | (principal      financial and accounting officer) |   |
|                                                                                                                                                    |   |                                              |   |
|                        *             |   | Chairman      of the Board                        |   |
| William      Freeman                                                                                                                                    |   |                                              |   |
|                                                                                                                                                    |   |                                              |   |
|                        *             |   | Director                                          |   |
| David      Andonian                                                                                                                                     |   |                                              |   |
|                                                                                                                                                    |   |                                              |   |
|                         *       |   | Director                                          |   |
| Eugene      Davis                                                                                                                                       |   |                                              |   |
|                                                                                                                                                    |   |                                              |   |
|                          * |   | Director                                          |   |
| Jacques      Leduc                                                                                                                                      |   |                                              |   |
|                                                                                                                                                    |   |                                              |   |
|                          * |   | Director                                          |   |
| David      B. Meltzer                                                                                                                                   |   |                                              |   |
|                                                                                                                                                    |   |                                              |   |
|                         *       |   | Director                                          |   |
| Dean      Olmstead                                                                                                                                      |   |                                              |   |
|                                                                                                                                                    |   |                                              |   |
|                         *       |   | Director                                          |   |
| David      Rayner                                                                                                                                       |   |                                              |   |

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|   | 31.1   | -      | Certification      of the principal executive officer pursuant to Section 302 of the      Sarbanes-Oxley Act of 2002                                  |
|--------|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |   |                                                                                                                                                  |
|   | 31.2   | -      | Certification      of the principal financial officer pursuant to Section 302 of the      Sarbanes-Oxley Act of 2002                                  |
|   |   |   |                                                                                                                                                  |
|   | 32     | -      | Certification      of the principal financial officer and principal executive officer      pursuant to Section 906 of the Sarbanes-Oxley Act of  2002 |

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