That is correct. To read the data from frame 1, you would need a second sequence local to pass it to following frames, and more sequence locals for any new data after frame 1 you would want to pass. Personally, I don't have the contempt for sequences like many other developers (IMO, they're not as evil as they're cracked up to be). However, Dennis Knutson makes a good point when he says that a sequence with data flow is redundant. In this case you may be better off just wiring your error data through the Telnet functions in the order you want them to execute. That would provide the same functionality as your sequence and make the code easier to read and manage.
Regards,
Steve