diff --git a/lua_examples/telnet/README.md b/lua_examples/telnet/README.md
index 5029da29..85075c7b 100644
--- a/lua_examples/telnet/README.md
+++ b/lua_examples/telnet/README.md
@@ -6,42 +6,19 @@
 | 2018-05-24 | [Terry Ellison](https://github.com/TerryE) |  [Terry Ellison](https://github.com/TerryE) | [telnet.lua](./telnet.lua) |
 
 
-The Lua telnet example previously provided in our distro has been moved to this
-file `simple_telnet.lua` in this folder. This README discusses the version complex
-implementation at the Lua module `telnet.lua`.  The main reason for this complex
-alternative is that a single Lua command can produce a LOT of output, and the
-telnet server has to work within four constraints:
+This README discusses the packet marshalling versions of telnet. The first (fifosock)
+version was written for SDK 2 implementations, with all of the marshalling imlemented
+in Lua; the second (pipe) version uses the latest features added to the SDK 3 version
+that have been added to prepare for the `lua53` implementation.  These exploit the
+stdin / stdout pipe functionality and task integration that is now build into the
+NodeNMCU Lua core. 
 
--  The SDK rules are that you can only issue one send per task invocation, so any
-overflow must be buffered, and the buffer emptied using an on:sent callback (CB).
+There are two nice advantages of this core implementation:
 
--  Since the interpeter invokes a node.output CB per field, you have a double whammy
-that these fields are typically small, so using a simple array FIFO would rapidly
-exhaust RAM.
+-  Errors are now written to stdout in a spearate task execution.
+-  The pipes pretty much eliminate uart and telnet overrun.
 
--  For network efficiency, the module aggregates any FIFO buffered into sensible
-sized packet, say 1024 bytes, but it must also need to handle the case when larger
-string span multiple packets. However, you must flush the buffer if necessary.
-
--  The overall buffering strategy needs to be reasonably memory efficient and avoid
-hitting the GC too hard, so where practical avoid aggregating small strings to more
-than 256 chars (as NodeMCU handles \<256 using stack buffers), and avoid serial
-aggregation such as buf = buf .. str as this hammers the GC.
-
-So this server adopts a simple buffering scheme using a two level FIFO. The
-`node.output` CB adds records to the 1st level FIFO until the #recs is \> 32 or the
-total size would exceed 256 bytes. Once over this threashold, the contents of the
-FIFO are concatenated into a 2nd level FIFO entry of upto 256 bytes, and the 1st
-level FIFO cleared down to any residue.
-
-The sender dumps the 2nd level FIFO aggregating records up to 1024 bytes and once this
-is empty dumps an aggrate of the 1st level.
-
-Lastly remember that owing to architectural limitations of the firmware, this server
-can only service stdin and stdout.  Lua errors are still sent to stderr which is
-the UART0 device.  Hence errors will fail silently.  If you want to capture
-errors then you will need to wrap any commands in a `pcall()` and print any
-error return.
+Both have the same interface if required into the variable `telnet`
 
 ## telnet:open()
 
@@ -64,7 +41,7 @@ Nothing returned (this is evaluted as `nil` in a scalar context).
 
 ## telnet:close()
 
-Close a telnet server and release all resources.
+Close a telnet server and release all resources.  Also set the variable `telnet` to nil to fully reference and GC the resources.
 
 #### Syntax
 
diff --git a/lua_examples/telnet/simple_telnet.lua b/lua_examples/telnet/simple_telnet.lua
deleted file mode 100644
index 3f9525bb..00000000
--- a/lua_examples/telnet/simple_telnet.lua
+++ /dev/null
@@ -1,35 +0,0 @@
--- a simple telnet server
-
-telnet_srv = net.createServer(net.TCP, 180)
-telnet_srv:listen(2323, function(socket)
-    local fifo = {}
-    local fifo_drained = true
-
-    local function sender(c)
-        if #fifo > 0 then
-            c:send(table.remove(fifo, 1))
-        else
-            fifo_drained = true
-        end
-    end
-
-    local function s_output(str)
-        table.insert(fifo, str)
-        if socket ~= nil and fifo_drained then
-            fifo_drained = false
-            sender(socket)
-        end
-    end
-
-    node.output(s_output, 0)   -- re-direct output to function s_ouput.
-
-    socket:on("receive", function(c, l)
-        node.input(l)           -- works like pcall(loadstring(l)) but support multiple separate line
-    end)
-    socket:on("disconnection", function(c)
-        node.output(nil)        -- un-regist the redirect output function, output goes to serial
-    end)
-    socket:on("sent", sender)
-
-    print("Welcome to NodeMCU world.")
-end)
diff --git a/lua_examples/telnet/telnet.lua b/lua_examples/telnet/telnet_fifosock.lua
similarity index 100%
rename from lua_examples/telnet/telnet.lua
rename to lua_examples/telnet/telnet_fifosock.lua
diff --git a/lua_examples/telnet/telnet_pipe.lua b/lua_examples/telnet/telnet_pipe.lua
new file mode 100644
index 00000000..935f5837
--- /dev/null
+++ b/lua_examples/telnet/telnet_pipe.lua
@@ -0,0 +1,68 @@
+--[[  A telnet server   T. Ellison,  June 2019
+
+This version of the telnet server demonstrates the use of the new stdin and stout 
+pipes, which is a C implementation of the Lua fifosock concept moved into the 
+Lua core.  These two pipes are referenced in the Lua registry.
+
+]]
+
+local M = {}
+local modname = ...
+local function telnet_session(socket) 
+  local node = node
+  local stdout, sending
+
+  local function output_CB(opipe)   -- upval: socket
+    stdout = opipe
+    local rec = opipe:read(1400)
+    if rec and #rec > 0 then socket:send(rec) end
+    return false -- don't repost as the on:sent will do this
+  end
+
+  local function onsent_CB(skt)     -- upval: stdout
+    local rec = stdout:read(1400)
+    if rec and #rec > 0 then skt:send(rec) end
+  end
+
+  local function disconnect_CB(skt) -- upval: socket, stdout
+    node.output()
+    socket, stdout = nil, nil -- set upvals to nl to allow GC
+  end
+
+  node.output(output_CB, 0)
+  socket:on("receive", function(_,rec) node.input(rec) end)
+  socket:on("sent", onsent_CB) 
+  socket:on("disconnection", disconnect_CB) 
+  print(("Welcome to NodeMCU world (%d mem free, %s)"):format(
+        node.heap(), wifi.sta.getip()))
+end
+
+function M.open(this, ssid, pwd, port)
+  local tmr, wifi, uwrite = tmr, wifi, uart.write
+  if ssid then
+    wifi.setmode(wifi.STATION, false)
+    wifi.sta.config { ssid = ssid, pwd  = pwd, save = false }
+  end
+  local t = tmr.create()
+  t:alarm(500, tmr.ALARM_AUTO, function()
+    if (wifi.sta.status() == wifi.STA_GOTIP) then
+      t:unregister()
+      t=nil
+      print(("Telnet server started (%d mem free, %s)"):format(
+             node.heap(), wifi.sta.getip()))
+      M.svr = net.createServer(net.TCP, 180)
+      M.svr:listen(port or 23, telnet_session)
+    else
+      uwrite(0,".")
+    end
+  end)
+end
+
+function M.close(this)
+  if this.svr then this.svr:close() end
+  package.loaded[modname] = nil
+end
+
+return M
+
+