The Times had reported some of the Chinese-made products were being advertised with prisoners in mind - having a mobile in jail is an offence.
Authorities have grown increasingly concerned about the use of drones to smuggle drugs and mobile phones into jails.
A woman who had al-Qaida terrorist material in her mobile phone was jailed for a year on Thursday.
A major new factor facing the prison authorities is social media, and the flow of videos and rumours coming from illicit mobile phones inside jails, with the capacity to shock the public and provoke copycat protests across the prisons estate.
They have been able to recruit members, make money by running business, communicate through laptops and mobile phones, send money from jail to jail and, at least once, co-ordinate an attack outside.
Williams, who was arrested last Friday, is being held in jail in Mobile, Ala., pending a preliminary hearing Thursday.
John Huvane, chief executive of Giuliani Security and Safety, says that during the 2012 truce gangsters expanded their criminal empires from jail via mobile phones.
There are already plenty of ideas among the states for spending the cash, including constructing a sea wall around the city jail in Mobile, Ala., and deepening shipping channels.
Prisoners who get hold of unauthorised mobile phones while in jail will face prosecution, and a new legal requirement will mean airguns must be stored out of the reach of children under new measures in the crime and security bill.
Kidnapping, extortion and drug-trafficking rings are run from the jails by mobile phone.
