Well, if you want people to connect to your server via telnet is it is normal. Due to some security concerns, many server operators disable telnet connections.
Since it sounds like you aren't quite sure what the telnet connection is for, enabling telnet allows persons to connect to your server without actually logging in through EverQuest. For example, if I had an account on your server and had set a telnet password for my account, I could connect via telnet and send messages to people, see who's online, and even kick people if my access level was high enough.
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