This conjecture may be viewed as a bipartite analogue of the Erdos-Faber-Lovasz Conjecture.
One very special case of this conjecture is the statement that a complete graph on vertices cannot be written as a disjoint union of fewer than complete bipartite graphs (although it does have numerous such decompositions). This was proved by Graham and Pollak [GP] who used spectral techniques to establish the following stronger fact.
Alternative proofs of the Graham-Pollak Theorem have been found by [P] and [T], and Alon, Brualdi, and Schader [ABS] resolved a conjecture of de Caen by proving that whenever is edge-colored so that each color class induces a complete bipartite graph, there is a spanning tree with one edge of each color. However, all of these results depend heavily on spectral tools. A proof of the general conjecture would appear to either require a vast generalization of these techniques, or a new combinatorial proof of the Graham-Pollak Theorem.
Bibliography
[ABS] N. Alon, R. A. Brualdi and B. L. Shader, Multicolored forests in bipartite decompositions of graphs, J. Combinatorial Theory Ser. B 53 (1991), 143-148.
[GP] R. L. Graham and H. O. Pollak, On the addressing problem for loop switching, Bell Syst. Tech. J. 50 (1971), 2495-2519.
[P] G. W. Peck, A new proof of a theorem of Graham and Pol lak, Discrete Math. 49 (1984), 327-328.
[T] H. Tverberg, On the decomposition of Kn into complete bipartite graphs, J. Graph Theory 6 (1982), 493-494.
* indicates original appearance(s) of problem.