The move follows complaints that the former monopoly operator has been dragging its feet in allowing competitors access to customers over the last mile of copper wire from local exchange.
Chief among the conditions the regulator has demanded are: service level agreements that will force BT to pay agreed compensation if it does not meet acceptable standards, a minimum ten-year lease on co-location space and provisions allowing operators to trade unneeded space in exchanges.
The corollary to this is that companies must provide services from their allotted space within three months (six months for the first competitor in any given exchange) or lose their allocation.
BT is also specifically obliged to treat its rivals on the same basis as its own broadband arm in the allocation of exchange space, and a new arbitration procedure can be invoked to resolve any allegations of unfairness.
David Edmonds, director general of telecommunications at Oftel said in a statement that this "clear framework" would provide "operators with added confidence to proceed with local loop unbundling."