No, this is a misunderstanding. On the server side, the socket listening on a particular port, can accept multiple connections.

What you cannot do, is to have another socket listening on the same port. (Even this is not quite right, but I don't want to make things too complex, by involving address and port reuse...)

I attached a piece of demo, not a telnet server, but it provides all the basic technics that you are looking for:

proxy.pl:

use strict;
use threads;
use IO::Socket::INET;

$| ++;

my $listener = IO::Socket::INET->new(LocalPort => 3126,
                                     Listen => 5,
                                     Reuse => 1) || 
             die "Cannot create socket\n";

my $client;
my $client_num = 0;
while (1) {
   $client = $listener->accept;
   threads->create(\&start_thread, $client, ++ $client_num);
}

sub start_thread {
   threads->self->detach();
   my ($client, $client_num) = @_;
   print "thread created for client $client_num\n";
   while (1) {
       my $whole_req = "";
       do {
           my $req;
           $client->recv($req, 700000);
           return if ($req eq ""); 
           $whole_req = $whole_req . $req;
       } until ($whole_req =~ m/\r\n\r\n/x);
       print "client $client_num got req:\n$whole_req";
       $whole_req =~ m/Host: ([\.|\w]*)/;
       my $host = $1;
       my $server = new IO::Socket::INET(Proto => "tcp",
                                         PeerPort => 80,
                                         PeerAddr => $host) ||
                    die "failed to connect to $host\n";
       print $server $whole_req;
       my $whole_res = "";
       do {
           my $res;
           $server->recv($res, 700000);
           $whole_res = $whole_res . $res;
       } until ($whole_res =~ m/<\/html>/);
       print "client $client_num got res\n";
       print $client $whole_res;
       close($server);
   }
   return;
}


tester.pl:

use strict;
use IO::Socket;

my $server = IO::Socket::INET->new(Proto => "tcp",
                                   PeerPort => 3126,
                                   PeerAddr => "localhost",
                                   Timeout => 2000)
             || die "failed to connect\n";
my $req = "GET / HTTP/1.1\r\nHost: $ARGV[0]\r\n\r\n";
while (1) {
    print $req;
    print $server $req;
    my $res;
    my $whole_res = "";
    do {
        $server->recv($res, 70000);
        exit if ($res eq "");
        $whole_res = $whole_res . $res;
    } until ($res =~ m/<\/html>/);
    print $whole_res;
}
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