ALBANY — The State Public Service Commission has set a hearing Aug. 24 that will help determine whether Verizon’s cellular-based telephone system on Fire Island should be expanded statewide as an alternative to rebuilding its landline system.

The hearing is scheduled for noon at the Ocean Beach Community House, 157-164 Bay Walk, Ocean Beach, Suffolk County.

The proposal to expand the cellular-based system statewide has come under attack by state Assemblyman Kevin Cahill, D-Kingston, who recently complained that the wireless Voice Link system puts residents at risk and keeps businesses from conducting commercial activities.

A press release from Cahill two weeks ago noted that Voice Link does not “allow for the transport of data, which is required to send a fax, use a credit card reader, or to utilize home security systems. Furthermore, it is unknown how well these devices will work in rural areas or in emergencies like Hurricane Sandy.”

The commission in May gave Verizon limited approval to replace Fire Island’s traditional landline telephones with its Voice Link wireless service.

Verizon, in its application for statewide use of Voice Link, had asked the commission to establish terms “under which Verizon could discontinue its current wireline service offerings in a specified area and instead offer a wireless service as its sole service offering in the area.”

Peter Sikora, a legislative director for District 1 of the Communications Workers of America union, contends that a pallet of 500 Voice Link telephone units delivered earlier this year to a Verizon warehouse in Monticello shows that the company plans to push its service in Ulster and Sullivan counties.

“Verizon seems to be going full force on installing Voice Link, which has a lot of problems,” he said. “You can’t get DSL through it, you can’t get Life Alerts, credit card processing, fax machines, any kind of data transmissions, and also there is no auxiliary power in a blackout.”

Verizon spokesman John Bonomo on Monday said there are 545 customers with Voice Link service on Fire Island. He said the hearing will be opened with a presentation by the utility.

“We think it will be a perfect opportunity for us to explain why we think Voice Link is a good solution for voice services and for the restoration of voice services on Fire Island and at the same time be able to hear any of the residents’ or summer vacationers’ concerns,” he said.