When trying to connect to mysql server via telnet I am getting following error:
telnet localhost 3306
Trying ::1...
Trying 127.0.0.1...
telnet: Unable to connect to remote host: Connection timed out
I tried telnet with 127.0.0.1, hostname also, but getting same error message. But I can connect with mysql -u username -p once I am in the server. 
Here is the result of netstat:
netstat -na | grep mysql
unix  2      [ ACC ]     STREAM     LISTENING     4540495  /var/run/mysqld/mysqld.sock
unix  3      [ ]         STREAM     CONNECTED     4542200  /var/run/mysqld/mysqld.sock
netstat -na | grep 3306
tcp        0      0 0.0.0.0:3306            0.0.0.0:*               LISTEN  
What could be possible problems? If you need some more details I could provide it without any problems.
Thanks a lot.