It was implimented recently (I think about three releases ago). It requires a few special modifications to the program to make it totally compatable with telnet though. Some of these are discussed at my BYOND-based MUD forum: http://www.nadrew.com/MUDdesign/
Basically, you need to override client/Command() and insert your on parser, since verbs are not compatable with telnet. The meat of a parser is available at the forum I just pointed out if you have a look around. The article titled "MUD basics" will show you how to create a basic telnet chatroom.
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Defining client/Command() automatically allows telnet clients to connect.
Everything they type in is then sent to client/Command(), and its up to you to parse and intepret it.
Alathon\\