How to Start a Fiber Optic Directional Drilling Business in 2025

With the U.S. investing billions into broadband infrastructure, there’s never been a better time to start a fiber optic directional drilling business. Whether you're a seasoned contractor or an entrepreneur looking to break into the horizontal directional drilling (HDD) industry, this guide will walk you through the essential steps to launch your business in 2025.

1. Understand the Industry Opportunity

The demand for fiber optic cable installation is booming, driven by federal programs like the BEAD initiative and the expansion of 5G networks. Directional drilling is the preferred method for installing fiber underground with minimal surface disruption, making it a high-value service in both urban and rural areas.

💡 Related Reading: Is Owning a Fiber Optic Directional Drilling Business Profitable?

2. Choose Your Business Model

You can start small with a pickup truck, trailer, and compact directional drill, or go bigger with a full crew and multiple rigs. Many new business owners begin with a lean setup and scale as they secure contracts.

Key Decisions:

• Will you rent or buy your first drill?

• Will you subcontract or bid directly on projects?

• Will you specialize in fiber optic only, or offer other underground services?

3. Acquire the Right Equipment

Here’s what you’ll need to get started:

• Directional drill (e.g., Vermeer D10x15 or Ditch Witch JT10)

• Mud mixing system

• Locating system (e.g., DigiTrak or Subsite)

• Pickup truck and heavy-duty trailer

• Safety gear and hand tools

🛠️ External Resources:

• Vermeer Used Equipment

• Ditch Witch HDD Solutions

  
  

4. Get Licensed and Certified

Check your state and local requirements for:

• Contractor’s license

• Business registration and EIN

• OSHA safety certifications

• CDL (if hauling heavy equipment)

5. Secure Specialized Insurance

Click To Get A Quote

Fiber optic drilling involves underground utility work, which carries serious liability risks. You’ll need insurance that covers:

• General liability

• Contractor’s equipment (owned or rented)

• Workers’ compensation

• Commercial auto

• Pollution liability

At Excavating Insurance Partners, we specialize in fiber optic drilling insurance and work with top carriers to protect your business.

👉 Get a quote today and make sure you’re covered before your first job.

💡 Related Reading: What Kind of Insurance Do I Need for a Directional Drilling Business?

6. Find Your First Clients

Start by networking with:

• Telecom companies and ISPs

• Utility contractors

• Municipalities and public works departments

Also, register on bidding platforms like SAM.gov and BidNet Direct to find government contracts.

💡 Related Reading: How Do I Find Jobs for My Fiber Optic Directional Drilling Business?

7. Focus on Safety and Risk Management

The biggest risks in fiber optic drilling include:

• Utility strikes

• Equipment damage

• Environmental spills

• Worker injuries

Proper training, planning, and insurance are essential to avoid costly mistakes.

💡 Related Reading: What Are the Biggest Risks in Fiber Optic Drilling?

Final Thoughts

Starting a fiber optic directional drilling business in 2025 is a smart move—but it requires planning, investment, and protection. With the right equipment, training, and specialized insurance from Excavating Insurance Partners, you can build a profitable business in a high-demand industry.