Hi:
Don't know much about interniche TCP/IP, but generally a call back is a function pointer. To implement in C it is rather easy, C++ a bit more difficult. They are used primarily to provide notification to other parts of an application asynchronously.
For example, in a network type app the HMI (GUI interface) may want to receive notification when the network is off line from the network module. To do this the Gui Module would provide a function pointer to the network to update the network status on screen.
Hope this helps.