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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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TABLEOF CONTENTS

| PART      I           |    |                                                                                                  |
|-----------------------|--------------|-------------------------------------------------------------------------------------------------------|
|                  |         |
| Explanatory      Note |    |  3                                                                                               |
|                  |         |                                                                                                  |
| PART      II          |    |                                                                                                  |
|                  |         |                                                                                                  |
| Item      7.          |         | Management’s Discussion and      Analysis of Financial Condition and Results of      Operations |    | 3 |
|                  |         |                                                                                                  |   |   |
|                  |         |
| PART      III         |    |                                                                                                  |
|                  |         |                                                                                                  |
| Item 15.         |         | Signatures                                                                                            |   | 6 |

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| Gain on exchange      recognized as of Sept. 30, 2006                                             |   | $      | 196,904,681  |   |
|--------------------------------------------------------------------------------------------------------|--------|--------|--------------|--------|
| Realized loss on      sale of 3,573,216 shares in October, 2006                                        |   |   | (13,399,552  | )      |
| Recognition of      “other than temporary impairment” as of Dec. 31,      2006   |   |   | (142,084,129 | )      |
| Gain recognized      for the year ended Dec. 31, 2006                                        |   | $      | 41,421,000   |   |

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|   | · | A      20 year forecast period. |
|--------|--------|---------------------------------|

|   | · | Specific      cash outflows in the first four years of the forecast period to account      for our portion of satellite design, construction and launch      expenditures. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Annual      population growth of 1.6% based on U.S. Census Bureau estimates of the      U.S. population in 2004. |
|--------|--------|------------------------------------------------------------------------------------------------------------------|

|   | · | Market      penetration assumptions of zero to 7% to 12% over the forecast period,      depending on the specific market and when the market is      launched. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Average      monthly revenue per customer of $40.00 when services are launched,      increasing to $44.50 over the forecast period. This increase equates to a      compound annual growth rate of 0.6%. A substantial portion of this revenue      is generated by the terrestrial component (rather than the satellite      component) of the ATC network. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Tax      rate of 40% after the consumption of net operating    losses. |
|--------|--------|------------------------------------------------------------------------|

|   | · | A      25% discount rate based on a weighted average cost of capital (WACC)      determined by analyzing and weighting the cost of capital for a peer group      of publicly traded satellite service providers, wireless communications      companies and telecommunications companies in  general. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | A      20-year forecast period, comprised of a high growth period for the first      10 years and a declining growth period beginning in year 11, and a      terminal period to perpetuity. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Development      cash outflows and capital expenditures related to the design and      construction of two satellites in the first 3 years of the forecast period      and the launch of one of these satellites in the fourth year of the      forecast period. Replacement costs for the construction and launch of one      satellite are included in the declining growth  period. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Satellite      only revenues based on market size data for traditional satellite segments      (maritime, fleet management, public safety, telematics and aeronautical)      compiled generally by third party research groups and penetration      estimates of 10% to 40% of our potential customer base, depending on the      specific market segment addressed over the 20 year forecast      period. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Terrestrial      revenues calculated as eleven percent of the total revenues generated by a      joint or strategic partner with whom TerreStar would intend to deploy a      terrestrial infrastructure and launch terrestrial services. Total      partnership revenues are based on (i) market penetration assumptions of      zero to 7 to 12% over the forecast period depending on the specific city      and when the city is launched, (ii) average monthly revenue per customer      of $40.00 when services are launched, increasing to $44.50 over the      forecast period. This increase equates to a compound annual growth rate of      0.6%. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Operating      expenses covering the operation of satellite facilities. These include a      network operations center, tracking, telemetry and command systems,      interconnect costs, in-orbit insurance, technical staff, and general and      administrative personnel Under the projected expense structure, EBITDA      margins grow to 60% early in the forecast period and expand to 70% later      in the forecast period. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | All      capital expenditures required to design and construct two satellites and      launch one satellite during the first four years of the forecast period.      Additional capital expenditures for constructing ground station segments      and investing in handsetdevelopment. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Tax      rate of 40% after the consumption of net operating losses generated in the      early years of the forecastperiod. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------|

|   | · | A      19 to 21% discount rate based on a weighted average cost of capital, or      WACC, determined by analyzing and weighting the cost of capital for a peer      group of publicly traded satellite service providers, wireless      communications companies and telecommunications companies in general, with      more weight given to traditional satellite service providers. A terminal      value calculated using a WACC of 12% and a perpetuity growth rate of      2.5%. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | TERRESTAR      CORPORATION         |                                          |
|--------|------------------------------------|-----------------------------------------------|
|   |                               |                                          |   |
|   |                               |                                          |   |
|   | By:                                | /s/ Jeffrey      W. Epstein              |   |
|   |                               | Jeffrey      W. Epstein                       |   |
|   |                               | President,      General Counsel and Secretary |   |
|   |                               |                                          |   |
|   | Date:   May      7, 2008 |                                          |

|  /s/      Jeffrey W. Epstein                                                                                                           |   | President,      General Counsel and Secretary          |   |
|---------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------|--------|
| Jeffrey      W. Epstein                                                                                                                     |   | (principal      executive officer)                     |   |
|                                                                                                                                        |   |                                                   |   |
|  /s/      Neil Hazard                                                                                                                  |   | Executive      Vice President, Chief Financial Officer |   |
| Neil      Hazard                                                                                                                            |   | (principal      financial officer)                     |   |
|                                                                                                                                        |   |                                                   |   |
|                        * |   | Director                                               |   |
| David      Andonian                                                                                                                         |   |                                                   |   |
|                                                                                                                                        |   |                                                   |   |
|                        * |   | Director                                               |   |
| Eugene      Davis                                                                                                                           |   |                                                   |   |
|                                                                                                                                        |   |                                                   |   |
|                        * |   | Director                                               |   |
| William      Freeman                                                                                                                        |   |                                                   |   |
|                                                                                                                                        |   |                                                   |   |
|                        * |   | Director                                               |   |
| Jacques      Leduc                                                                                                                          |   |                                                   |   |
|                                                                                                                                        |   |                                                   |   |
|                        * |   | Director                                               |   |
| David      B. Meltzer                                                                                                                       |   |                                                   |   |
|                                                                                                                                        |   |                                                   |   |
|                        * |   | Director                                               |   |
| Dean      Olmstead                                                                                                                          |   |                                                   |   |
|                                                                                                                                        |   |                                                   |   |
|                        * |   | Director                                               |   |
| David      Rayner                                                                                                                           |   |                                                   |   |

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| 31.3   | -      | Certification      of the principal executive officer pursuant to Section 302 of the      Sarbanes-Oxley Act of 2002                                  |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                  |
| 31.4   | -      | 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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