The camera should normally be on a tripod for this sort of shot, as the telephoto setting makes camera shake more obvious.
Like looking through a telescope, a telephoto shot flattens the perspective. It also reduces depth of field (what's in focus in front of and behind the subject).
It's good for closeups without distorting people's faces.

Try clicking back and forth between this page and the previous one to see the difference between wide angle and telephoto shots with the same framing.

 

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Telephoto shot
   
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