SSH tunneling under Solaris 9

After setting up an SSH tunnel under Solaris 9 using ssh -L, get the following errors when connecting using telnet:

channel_open_failure: 2: reason 1: open failed
channel_open_failure: 3: reason 1: open failed

The solution is to enable tcp forwarding in /etc/ssh/sshd_config:

AllowTcpForwarding yes

In RedHat this is probably set to yes already.