Simply put, Telnet is a program that allows you log on to a Unix-based computer. If you have an account on a Telnet server, you can access its resources (such as a directory of your files, e-mail, ftp, etc). The downside of Telnet is, to use it, you need to use Unix commands, which can be somewhat frustrating at times, especially to Mac users (inside joke).
TELNET
Meaning of TELNET in English
English glossary of computer and Internet terms. Английский глоссарий компьютерных и Интернет терминов. 2012