>>>>> "rug" == rug via RT <rt-comment@krbdev.mit.edu> writes:

    rug> Hi to whom it may concern, we widely use kerberized telnet as
    rug> an easy access to our services. The krb5-appl package is really
    rug> outdated and totally based on DES (it offers only 2 DES
    rug> encryption method). We are in the process of using stronger
    rug> keys and would like to know, if somebody gave telnet an update
    rug> to use at least one strong key?

The krb5-appl telnet has not been updated and is unlikely to be updated.
I believe that Jeff Altman added support for Kerberos authentication to
some telnet distribution that had TLS support, and that may even be
securely bound into the authentication.
I don't know which product that was or whether that happened.
Most of the world is using RFC 4462 Kerberized Ssh at this point.