I don't know much about ColdFire Lite, but I do know that 'telnet' is little more than a TCP session with text flowing in both directions. Telnet clients normally provide terminal emulation, but you probably don't need that. So if ColdFire Lite (like any TCP/IP stack) provides means to accept TCP connections and send/receive data through them, then you are fully equipped to make a 'telnet server.' Listen for connections, receive text commands, interpret them, send responses. It's up to you.