Use wireshark and check the packets to see if they go above 1514 bytes, maybe there is a way to set the telnet library you are using to get the right size. In my case it was 1420 data + the Ethernet, IP, TCP, RCP and VXI-11 protocols overhead.
Raw Telnet doesn't have the RCP and VXI-11 overhead but it does add options on the TCP layer so you have about 66 bytes overhead so the maximum data size should be 1448
So if you can change that it should speed up your capture.