1. Configure an IP address on the ethernet interface
cisco(config)# int fa0/0
cisco(config-if)# ip add 192.168.1.50 255.255.255.0
cisco(config-if)# no shut

2. Create a loopback interface
cisco(config)# int lo0
cisco(config-if)# ip add 1.1.1.1 255.0.0.0

3. Configure the line based on the “show line” output.
* If enabled, the port will be accessible through the network on TCP port 20xx where xx is the TTY of the port on the router
cisco(config)# line 1 16
cisco(config-line)# no exec  //unwanted signals from the attached device do not launch.
cisco(config-line)# exec-timeout 0 0 //disable the line timeout period
cisco(config-line)# logging synchronous
cisco(config-line)# transport input all

4. Configure default route
cisco(config)# ip route 0.0.0.0 0.0.0.0 192.168.1.1
cisco(config)# ip default-gateway 192.168.1.1 
// ip default-gateway is configured as well in case routing is not enabled. E.g. the terminal server is in ROMMON mode as a result of a bad reboot after power outage.

5. Enable telnet line
cisco(config)# line vty 0 4
cisco(config-line)# password cisco
cisco(config-line)# login

6. Configure host and line mapping
*e.g. Router A is connected to line 1
cisco(config)# ip host RouterA 2001 1.1.1.1