When I first read there was a cell phone sniffing dog, I assumed it was a pet meant to find misplaced items.

Not so. 

Razor (I guess he's a Motorola fan) is just one of 18 dogs currently being trained by All States K-9 Detection, the first business set up to sell bomb detection dogs to prisons. While they not seem as scary knives or guns, cell phones are just as dangerous, for instance a recent case in Baltimore where a witness was killed after the hit was called in by an incarsurated inmate. 

Meaning states need to start cracking down. Maryland and Florida have already passed tougher laws aimed against prisoners caught with cell phones, though I have no idea how you threaten someone already behind bars. Like in Florida you can now fine a prisoner up to $5,000 and add up to 5 years to their sentence if they're caught with a cell phone, PDA. or pager; only if your already facing a life sentence, and people like that guy in Baltimore would be, how is another 5 years a deterrent?

Plus if the dogs are being trained to recognize the scent of a smell phone; what's to stop prisons from just sneaking in mobile phones with a different smell?  

Still the dogs seem to be having some effect. A dog that's gone through the 8 week training program only costs $6,500 and Maryland's three dogs have already found 23 cell phones.

Which is a small price to pay if lives are being saved.

Via here and here