The media select committee and commercial broadcasters -- including BSkyB, Channel 4, Channel 5 and the radio industry -- have aggressively opposed the government's plans to exempt the BBC from the powers of Ofcom. Instead, the public service broadcaster would remain under the control of its governors.
Ofcom is due to take over from regulators such as the ITC, the Broadcasting Standards Commission, Radio Authority, the Radiocommunications Agency and Oftel.
Peter Ainsworth, the shadow media secretary, has said the Tories will table an alternative proposal to the government's, which would bring the BBC under Ofcom's powers.
It is believed he will recruit cross bench support from Liberal Democrats and even Labour peers who are believed to be against the plans, which were drawn up by former culture and media secretary Chris Smith.
Ofcom will not assume its powers until mid-2003 at the earliest, Baroness Blackstone, media minister in the Lords, revealed this week. This is the first time the government has suggested a date for the creation Ofcom.
This will be followed by the eagerly awaited communications bill, which was left out of the new government's first parliamentary term.
Meanwhile, the government has admitted that the creation of Ofcom will result in the loss of around 500 jobs, mainly from the Radiocommunications Agency. The five regulatory bodies, which will be swallowed up by Ofcom, employ around 945 between them.
Ofcom is expected to add around £5m on to the current £70m it costs to regulate the media and communications sector. The government is expected to look to broadcasters and other means to meet the watchdog's operational costs.