TEL AVIV, Nov. 8 -- Nortel Networks and Israel's Ofek New World have signed an agreement that makes Nortel a preferred supplier for building a new Israeli communications network based on Internet protocol. Financial details were not disclosed although Israel's Globes financial newspaper estimated it was worth $700 million.Ofek New World, a wholly owned subsidiary of Eurocom Communications Ltd, said at a news conference that the company and its partners plan to invest $1 billion in the project over the next few years if approved for a license by the government. Israel's government recently issued a preliminary tender for setting up domestic communications services to introduce competition against state-run telecom monopoly Bezeq Israel Telecoms. Ofek received a license from the government to install fiber optic cables and hopes to receive another license to provide domestic phone services, said Eurocom president and CEO Shaul Elovitch.