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"   Raw mode
       cfmakeraw() sets the terminal to something like the "raw" mode  of  the
       old  Version 7 terminal driver: input is available character by charac‐
       ter, echoing is disabled, and all special processing of terminal  input
       and  output characters is disabled.  The terminal attributes are set as
       follows:

           termios_p->c_iflag &= ~(IGNBRK | BRKINT | PARMRK | ISTRIP
                           | INLCR | IGNCR | ICRNL | IXON);
           termios_p->c_oflag &= ~OPOST;
           termios_p->c_lflag &= ~(ECHO | ECHONL | ICANON | ISIG | IEXTEN);
           termios_p->c_cflag &= ~(CSIZE | PARENB);
           termios_p->c_cflag |= CS8;
"

If that is set on the socket for the telnet interface it does make a difference.