Telnet is a program to allow users to log into the system over network. The users get a shell to work, as if they were logged in physically. But the problem with telnet is that the data and the authentication credentials are sent in clear text over the network and can be sniffed. So a secure method for the same task is to use SSH (secure shell), which encrypts the data and authentication details transffered over the network.
But, somehow, if you are planning to use telnet , this article shows how to configure it on linux (RedHat) box.