| Date                of Report (date of earliest event reported): |  February                28, 2007 |
|------------------------------------------------------------------|----------------------------------------|

| TERABEAM,                INC.                                                        |
|--------------------------------------------------------------------------------------|
| (Exact                name of registrant as specified in its                charter) |

| Delaware                                                      | 000-29053                               | 04-2751645                                       |
|---------------------------------------------------------------|-----------------------------------------|--------------------------------------------------|
| (State                or other jurisdiction of incorporation) | (Commission                file number) | (IRS                employer identification no.) |

| 2115                O’Nel Drive, San Jose, CA     | 95131                     |
|---------------------------------------------------------|---------------------------|
| (Address                of principal executive offices) | (Zip                code) |

| Registrant’s                telephone number, including area code: | (408)                731-2700 |
|--------------------------------------------------------------------------|-------------------------------|

| Not                Applicable                                                               |
|---------------------------------------------------------------------------------------------|
| (Former                name or former address, if changed since last                report) |

| o | Written                communications pursuant to Rule 425 under the Securities Act (17 CFR                230.425) |
|---|--------------------------------------------------------------------------------------------------------------------------|

| o | Soliciting                material pursuant to Rule 14a-12 under the Exchange Act (17 CFR                240.14a-12) |
|---|---------------------------------------------------------------------------------------------------------------------------|

| o | Pre-commencement                communications pursuant to Rule 14d-2(b) under the Exchange Act (17                CFR 240.14d-2(b)) |
|---|-------------------------------------------------------------------------------------------------------------------------------------------|

| o | Pre-commencement                communications pursuant to Rule 13e-4(c) under the Exchange Act (17                CFR 240.13e-4(c)) |
|---|-------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (c) | Exhibits |
|--------|-----|----------|

|                                    | TERABEAM,                INC. |
|-----------------------------------------|-------------------------------|
|                                    |                          |   |
|                                    |                          |   |
|                                    |                          |   |
| Dated:                February 28, 2007 | By:                           |    /s/                David L. Renauld                       |
|                                    |                          | David                L. Renauld |
|                                    |                          | Vice                President |

| Number | Title                                                 |
|--------|-------------------------------------------------------|
|   |                                                  |
| 99.1   | Press                release dated February 28, 2007. |