Telnet is not enabled by default, neither is firewall.
If this is new server, you need to access it using SSH,
How To Connect To Your Droplet with SSH will show you how to do so.
Once you get into Droplet, you can find out how to install telnet, but:
WARNING: Telnet is insecure protocol and is not recommended to be used! All data you send to server using telnet (including passwords) are sent in plain-text form, unencrypted. SSH is encrypted and much more secure than telnet.
If you already logged in, installed telnet but you followed Initial set up tutorial (incl. Step 7), then you have enabled UFW firewall. To check is it enabled run:
In case it’s enabled just allow:
But if you didn’t set up telnet manually, you need to do so (not recommended).

by Mitchell Anicas
When you start a new server, there are a few steps that you should take every time to add some basic security and give you a solid foundation. In this guide, we'll walk you through the basic steps necessary to hit the ground running with Ubuntu 16.04.