Telnet transmits all data (including usernames and passwords) in clear text over the network, making it vulnerable to eavesdropping and packet sniffing attacks. SSH encrypts the entire session, providing confidentiality and integrity. Telnet is widely available (option A is wrong), uses minimal bandwidth (option C is wrong), and does support authentication (option D is wrong - you authenticate with username/password, just not securely). The lack of encryption is Telnet's fundamental security weakness.