You have FTP access software. You have a text editor, such as, Notepad, Simple Text, etc. To simplify this example, we are creating the .htpasswd in the protected directory protected .
Red words are Telnet commands.
This will create the password file for this directory. AuthType Basic require user dave juliet Done. You know how to use Telnet. You will then be prompted for the new password for this new user. Now check via your web browser to ensure the new username and password works.