The problem is that the open works on the local system. How do I open and work on the file that is located remotely?

I'd say, the problem is the telnet protocol that doesn't allow you to open a file remotely.

Chose another way of doing it. Either

1. Transfer the file to your local working place, read and/or edit, transfer back. SCP, FTP or HTTP might be protocols to chose from.
2. Use system tools on the remote machine to access the file.
3. Use Perl on the remote machine to access the file. Problem here is, without accessing a file on the remote machine, you won't be able to save a Perl programme to disk. You could use Perl on the command line there (which works with Telnet) or use methods 1 or 2 to get there... which makes this a bit obsolete though =)

Cheers, Sören