From InterSoft Int'l:
NetTerm is a network terminal application that can act as a Telnet client on a locally attached Ethernet network, and as a dial-up networking client using Winsock protocols. The most popular file transfer protocols, Zmodem, and Kermit, are supported on both Ethernet and bulletin boards. NetTerm can be launched from within your favorite browser.
What's new in this version:
Version 5.4.4 enhanced support for Windows 8 desktop.
Been using Netterm for the past 4+ years (not sure why they stopped producing newer versions). Anyway, Netterm provides some simple but useful features in addition to the generic telnet window. These include the ablility add shortcut buttons and colors/fonts specific to each server saved in its address book. (Handy for easily identifing PROD vs. TEST when you have multiple versions running).
In the rather slim market of Telnet applications, Netterm gives the most bang for the buck.
I've tried many freeware of telnet clients, netterm has the most features and is the most stable telnet client I've found. It takes some time to configure... But once you have it up and running, it give you all sort of flexbility for the terminal, colors, bars, termianl size, also included Xterm support... I'll rate it #1 freeware.