Debian – Strange telnet client behavior when not specifying a port

On Debian Jessie, using php5.6 and telnet version:

$ dpkg -l | grep telnet
ii  telnet                         0.17-36                      amd64        The telnet client

I have written a php script to listen on port 23 for incoming tcp connections. For testing, I telnet into it, however I have noticed that it actually makes a difference wither I telnet into it like this:

$ telnet localhost 23

vs like this:

$ telnet localhost

But according to man telnet, it should not make a difference:

port Specifies a port number or service name to contact. If not specified, the telnet port (23) is used.

If I do not specify the port, then I get some weird noise on the line. Or maybe its not noise? But if I do specify the port then I do not get this noise on the line. The noise is the following set of ascii characters:

<FF><FD><03><FF><FB><18><FF><FB><1F><FF><FB><20><FF><FB><21><FF><FB><22><FF><FB><27><FF><FD><05>

And just in case this is due to a bug in my server-side code, here is a cut down version of the script, which does exhibit the noise (though I don't think there are any bugs in the code, I just include this because someone is bound to ask):

#!/usr/bin/php
<?php

set_time_limit(0); // infinite execution time for this script
define("LISTEN_ADDRESS", "127.0.0.1");

$sock = socket_create(AF_INET, SOCK_STREAM, SOL_TCP);
socket_set_option($sock, SOL_SOCKET, SO_RCVTIMEO, array('sec' => 30, 'usec' => 0)); // timeout after 30 sec
socket_bind($sock, LISTEN_ADDRESS, 23); // port = 23
socket_listen($sock);
echo "waiting for a client to connect...\n";

// accept incoming requests and handle them as child processes
// block for 30 seconds or until there is a connection.
$client = socket_accept($sock); //get the handle to this client
echo "got a connection. client handle is $client\n";

$raw_data = socket_read($client, 1024);
$human_readable_data = human_str($raw_data);
echo "raw data: [$raw_data], human readable data: [$human_readable_data]\n";

echo "closing the connection\n";
socket_close($client);
socket_close($sock);

function human_str($str)
{
    $strlen = strlen($str);
    $new_str = ""; // init
    for($i = 0; $i < $strlen; $i++)
    {
        $new_str .= sprintf("<%02X>", ord($str[$i]));
    }
    return $new_str;
}

?>

And the output from the script (from connecting like so: telnet localhost) is:

waiting for a client to connect...
got a connection. client handle is Resource id #5
raw data: [�������� ��!��"��'��], human readable data: [<FF><FD><03><FF><FB><18><FF><FB><1F><FF><FB><20><FF><FB><21><FF><FB><22><FF><FB><27><FF><FD><05>]
closing the connection

But when connecting like telnet localhost 23 (and issuing the word hi) the output is:

waiting for a client to connect...
got a connection. client handle is Resource id #5
raw data: [hi
], human readable data: [<68><69><0D><0A>]
closing the connection

So my question is whether this is expected behavior from the telnet client, or whether this is noise? It is very consistent – its always the same data – so it could be some kind of handshake?

Here is the "noise" string again with spaces and without spaces, in case its more useful:

FFFD03FFFB18FFFB1FFFFB20FFFB21FFFB22FFFB27FFFD05
FF FD 03 FF FB 18 FF FB 1F FF FB 20 FF FB 21 FF FB 22 FF FB 27 FF FD 05