If you install an older version of Linux or a different flavor or must install a server, but still want the telnet server (telnetd) turned off:
Look at /etc/inetd.conf and find the line that starts with:
telnet stream tcp .... (etc.)
and put a # as the first character on that line. Be sure line wrap is off
if you're using pico (run with `pico -w`) or use emacs or vi, which don't
generally insert line wraps.
You'll then have to restart the inetd super server.
killall -HUP inetd
That'll turn the telnet server off.