Be sure that TELNET is installed (part of the bos, I'm sure)
Taken from man:
The telnetd daemon is normally started by the inetd daemon. It can also be controlled from the command line, using SRC commands.
The /usr/sbin/telnetd daemon is a server that supports the Defense Advanced
Research Product Agency (DARPA) standard Telnet Protocol (TELNET). Changes to
the telnetd daemon should be made using the System Management Interface Tool
(SMIT).
Changes to the telnetd daemon can be made using the System Management Interface
Tool (SMIT) or System Resource Controller (SRC), by editing the /etc/inetd.conf
or /etc/services file. Entering telnetd at the command line is not recommended.
The telnetd daemon is started by default when it is uncommented in the
/etc/inetd.conf file.
The inetd daemon get its information from the /etc/inetd.conf file and the
/etc/services file.
After changing the /etc/inetd.conf or /etc/services file, run the refresh -s
inetd or kill -1 InetdPID command to inform the inetd daemon of the changes to
its configuration file.