Item 2.06. Material Impairments.

On May 31, 2012, the International Bureau of the Federal Communications Commission (the "FCC") announced the termination of our license for use of the 148 degree orbital location. We are currently evaluating whether to challenge this termination. As previously disclosed under the caption "FCC Authorizations" in our public filings, including within Note 7 to the Consolidated Financial Statements included in our annual report on Form 10-K for the year ended December 31, 2011 and Item 1 of Part I of our subsequent quarterly report on Form 10-Q, we did not have a satellite positioned at the 148 degree orbital location after the retirement of EchoStar V in August 2009. As also previously disclosed in our public filings, our license for use of the 148 degree orbital location has a $68 million carrying value, which we will be required to write off in the second quarter 2012 due to the termination of this license by the FCC.

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