1. The commands & characters are sent to the operating system on common server computer.
2. The local operating system sends these commands & characters to a TELNET client program that is situated on the same local computer.
3. The TELNET client transforms the characters entered through the user to an agreed format known such as Network Virtual Terminal (NVT) characters and sends them to the TCP/IP protocol stack of the server computer. NVT is the common device among the client and server.
4. The commands & text are primary broken into TCP and then IP packets and are sent across physical medium from local client computer to the server.
5. At the server computer's end, the TCP/IP software gathers all the IP packets, verifies their rightness & reconstructs the original command & handover the commands or text to that computer operating system.
6. The operating system of the server computer hands over these all commands or text to the TELNET server program that is executing on that remote computer.
7. The TELNET server program on the remote server computer and then transforms the commands or text from the NVT format through the format understood through the remote computer. The TELNET cannot handover the commands directly or text to the operating system so TELNET hands over commands/text to the Psuedo-terminal driver.
8. The Pseudo-terminal driver program after those hands over the commands or text to the operating system of the remote computer, which invokes the application program then on the remote server.
The working of the TELNET is very simple. Assume you are working as a faculty member of any institute. You have account FACULTY-1 on the institute computer that is one of the hosts of the Internet. You are chosen for academic exchange scholarship to USA. You will get a user account in U.S.A. Though, all your colleagues know only your institute v account. Therefore, using Telnet you can always log on to your account for mail your papers for using programs etc.
There are several databases obtainable on the Internet. You can explore these databases by using Telnet. There are going to be several Internet services yet to be created. Every year & better means of accessing the treasures of the Internet is appearing wherein Telnet is the key for accessing.