TalkTalk put out what, on the face of it, looked like a fine trading update Wednesday morning — but shares are tanking right now.

The telephone, internet, and TV provider reported a 3.5% rise in first quarter revenue and says it’s on track to hit its target of 5% revenue growth this year.

But the quarterly revenue rise missed forecasts and stock is down 6.8% an hour after trade started on the London Stock Exchange.

TalktalkInvesting.comShares in TalkTalk have collapsed at the open.

Investors seem particularly spooked by TalkTalk’s bearish comments on the broadband market. TalkTalk said this morning that the “broadband market was softer than we have seen in recent quarters, with higher promotional activity in the sector.”

Rivals Sky and BT are locked in a discounting battle right now, in a bid to try and win new customers. That isn’t good for everyone else in the sector. So while things maybe decent enough for now, all the signs point to TalkTalk getting squeezed in the future.

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