telnet not obeying the per_source limit set in /etc/xinetd.conf

Issue

• We are trying to limit the telnet connection from any individual IP address to 10. However this is not working and it seems that each source can have unlimited connections. Our configuration is set to limit the connections, via the per_source value in /etc/xinetd.conf to 10 as shown below:

# cat /etc/xinetd.conf

defaults
{
...
        cps             = 300 2
        instances       = 50
        per_source      = 10


# cat /etc/xinetd.d/telnet
service telnet
{
        disable = no
        flags           = REUSE
        socket_type     = stream
        wait            = no
        user            = root
        server          = /usr/sbin/in.telnetd -D report
        log_on_failure  += USERID
}